Renault-Nissan Alliance Delivers Annual Synergy Target One Full Year Ahead of Schedule
Jul 05, 2016, 03:00 ET
PARIS and YOKOHAMA, Japan, July 5, 2016 /CNW/ -
- Renault and Nissan generated €4.3 billion in synergies in 2015, one year earlier than anticipated
- Purchasing, Engineering and Manufacturing were the top contributors to synergies
- Common Module Family and cross-production continue to reduce costs, while the development of technologies including autonomous drive and vehicle connectivity is expected to generate major savings moving forward
- Thanks to the convergence, the Alliance expects to generate at least €5.5 billion in synergies in 2018
Renault-Nissan Alliance generated €4.3 billion in synergies in 2015, one year ahead of schedule and an increase of 13 percent from 2014. Purchasing, engineering and manufacturing were the main contributors.
Renault and Nissan generate "synergies" by working together to reduce costs, avoid spending and increase revenue. Only new synergies - not cumulative - are taken into account each year. Synergies help Renault and Nissan meet their financial goals and deliver higher-value vehicles to customers.
Renault and Nissan, which together sell one in 10 cars globally, converged four key functions in 2014: Engineering, Manufacturing Engineering & Supply Chain Management, Purchasing and Human Resources. While Renault and Nissan remain separate companies, each function is led by a common Alliance Executive Vice President.
"Convergence in four of our key business functions has resulted in creating value by reducing costs, avoiding expenses and increasing revenues. Thanks to the convergence, the Alliance expects to generate at least €5.5 billion in synergies in 2018," said Carlos Ghosn, Chairman and CEO of the Renault-Nissan Alliance.
Common Module Family
Common Module Family (CMF) is the Alliance's unique system of modular vehicle architecture and an increasing source of synergies.
The Alliance is already reaping the benefits from CMF, reflected in the launch by Nissan of the Rogue in North America, the award winning Qashqai in Europe and the X-Trail in Japan and China. Renault also successfully launched the new Espace, the Kadjar, the new Megane and Talisman, all based on CFM-C/D.
In 2015, Renault began selling the Kwid in India, followed by the launch of the Redi-Go by Datsun in mid-2016. Both are built in the Alliance's plant in Chennai, India, on the CMF-A architecture, which covers the smallest and most affordable category of cars.
SOURCE Renault-Nissan Alliance
For further information: Aline Henry, Renault-Nissan Alliance, +33-(0)6-03-09-54-97, [email protected]; Toshitake Inoshita, Nissan Motor Co., Ltd., +81-(0)50-3804-7199, [email protected]
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