May 27, 2020—In a cost-saving measure, Renault and Nissan have announced a plan to work together moving forward, and it includes splitting up the models they both produce, according to a report by Jalopnik.com.

Instead of each company designing every vehicle they sell, Nissan will design the pairing's midseive cars and SUV, while Renault SA will do the same for small cars and compact SUVs. According to the Wall Street Journal, the plan is that, by 2025, nearly half of those companies' vehicles will be built in that manner.

As a result, the companies believe they can reduce nearly 40 percent off the multibillion-dollar cost of designing the next generations of their vehicles.

That division of labor extends beyond manufacturing. Nissan would be tasked with autonomous driving research, for example. The partnership is reportedly intended to avoid a full merger between Renault and Nissan, while granting each OEM a semblance of independence.