Mitsubishi has joined the Renault-Nissan Alliance to form one of the three largest automotive groups in the world. The move has also created a dominant force in the plug-in car market, with the likes of the Mitsubishi Outlander PHEV, Nissan Leaf, and Renault Zoe all best selling models.

The deal has seen Nissan take a 34 per cent share in Mitsubishi Motors, creating an automotive group with global sales of 10 million units in the 2016 fiscal year.

Nissan chairman Carlos Ghosn revealed that the move will see the firms collaborate on joint purchasing, share manufacturing plants, develop common vehicle platforms, and technology share.

This has significant implications for the ultra low emission car market since the Outlander PHEV, Leaf, and Zoe are the first, second and fourth best selling plug-in cars in the UK. The Leaf is the highest selling electric vehicle worldwide, and the Zoe often takes number one spot in a number of European countries.

Ghosn said: “The combination of Nissan, Mitsubishi Motors and Renault will create a new force in global car-making. It will be one of the world’s three largest automotive groups, with the economies of scale, breakthrough technologies and manufacturing capabilities to produce vehicles to serve customer demand in every market segment and in every geographic market around the world.”

The deal should free up a large amount of revenue, even for short term targets. Bosses are looking to save around £190 million next year, rising to more than £470 million the financial year after that.