Renault-Nissan launch projects to accelerate Alliance synergies

The Renault-Nissan Alliance is launching convergence projects in four key functions to enhance performance and achieve at least a €4.3 billion (Rs 36,799 crore) annualised synergy goal by 2016.

The Alliance has announced that it will study increased convergence in R&D, manufacturing and logistics, purchasing, and HR to be jointly managed by Renault and Nissan.

“Renault and Nissan’s partnership is fundamentally based on mutual respect and an attitude where all ‘win-win’ projects move forward on the fast track,” said Renault-Nissan Chairman and CEO Carlos Ghosn. “With the new convergence projects, we will continue on the same path and with the same principles of respect and transparency -- at an accelerated pace.”

Four areas of focus

Purchasing: The additional convergence projects in R&D and manufacturing will help drive more synergies and deliver more economies of scale for the companies and their suppliers globally – including France, Japan and key growth markets. 

R&D: Renault and Nissan will study how to allocate research on next-generation technologies to spread resources further. The R&D study will also focus on the acceleration of common platforms, define and deploy a common powertrain strategy, and optimise test facilities globally. 

Manufacturing & Logistics: Projects will focus on how to improve plant performance through more rigorous benchmarking. The teams will also review how to optimise capital expenditures through standardisation, better capacity utilisation and logistics efficiency. 

Human Resources: Renault and Nissan teams will study the development of common HR processes throughout the Alliance. The companies will launch a project to create a unified ‘talent management’ policy from the home countries and across global operations. 

Renault and Nissan, which joined hands in 1999, have the longest lasting and most productive cross-cultural collaboration in the auto industry. Since then, the two companies have converged functions including information technology, logistics, customs and trade, and purchasing.

The Alliance has expanded significantly and now ranks as the world’s fourth largest automotive group by volume. The Alliance encompasses partnerships and JVs including Daimler, Mitsubishi, AVTOVAZ, Ashok Leyland and Dongfeng.