Renault-Nissan to share parts and save $4 billion/year: Starting from India

The alliance of French car makers, Renault SA, and Japanese automakers, Nissan Motor Company, Renault-Nissan will be combining both manufacturing and R&D facilities, in order to implement savings of up to $4 billion (Rs 25,089 crores) per annum.

By early April, Renault and Nissan will be appointing a manager to oversee production departments while the same joint effort will be seen where R&D facilities are concerned. 

Renault-Nissan new structure to share parts and save $4 billionyear Starting from IndiaFollowing this joint venture, Renault and Nissan will be able to manufacture cars at the same plant and using shared parts. The first phase will be adopted at the alliance’s plant in Oragadam in Chennai, India. This plant has the capacity to produce 400,000 units per annum.

By the year 2020, this structure will be expanded to 10 countries across the globe. Renault and Nissan have maintained a strategic partnership over the past decade, though they operated separately and maintained separate brands. This alliance already boasts of $3.6 billion in savings during 2012 due to combined purchase of power and other facilities. The automotive duo also took controlling stake in Russia’s Avtovaz which will allow the alliance to achieve their goal of 10 million unit sales by 2016. (source)