Synergies growth for Renault Nissan Alliance
The Renault-Nissan Alliance is launching convergence projects in four key functions to enhance performance and achieve at least a €4.3 billion annualized synergy goal by 2016.
To achieve at least €4.3B annualized synergy target, the Alliance will focus on closer integration in four key areas: R&D, Manufacturing & Logistics, Purchasing, and Human Resources. Projects in each function focused on improving operational performance of the Alliance and fully leverage economies of scale.
“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
Four operations are launching convergence projects, including:
Purchasing: Renault and Nissan have had a significantly combined purchasing organization for more than a decade. The additional convergence projects in R&D and Manufacturing will be designed to drive more synergies and deliver more economies of scale for the companies and their suppliers globally – including France, Japan and key growth markets. Christian Vandenhende, Managing Director of Renault-Nissan Purchasing Organization, will be the Purchasing convergence project leader.
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 optimize test facilities globally. Tsuyoshi Yamaguchi, Director of Common Platforms and Parts for the Renault-Nissan Alliance, will be the R&D convergence project leader.
Manufacturing & Logistics: Projects will focus on how to improve plant performance through more rigorous benchmarking. The teams will also review how to optimize capital expenditures through standardization, better capacity utilization and logistics efficiency. Shouhei Kimura, Corporate Vice President for Vehicle Production Engineering at Nissan, will be the Manufacturing & Logistics convergence project leader.
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. Marie-Françoise Damesin, Executive Vice President for Human Resources at Renault, will be the HR convergence project leader.
The convergence projects are expected to be presented to the appropriate employee representation and corporate decision-making bodies for Renault in France and for Nissan in Japan, and confirmed by the end of the first quarter 2014 for implementation.
Together, Stronger for 15 Years
Renault and Nissan form the longest lasting and most productive cross-cultural collaboration in the auto industry. The companies joined forces in 1999. Since then, the two companies have converged functions including information technology, logistics, customs and trade, and purchasing.
The Alliance has expanded significantly since founding and now ranks as the world’s fourth largest automotive group by volume. The Alliance encompasses partnerships and joint-ventures including Daimler, Mitsubishi, AVTOVAZ, Ashok Leyland and Dongfeng.