Renault - Nissan gen­er­ates €4.3b in syn­er­gies in 2015

Auto components India - - INTERNATIONAL -

Renault-Nissan Al­liance gen­er­ated €4.3 bil­lion in syn­er­gies in 2015, 1 year ahead of sched­ule and an in­crease of 13% 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 4 key func­tions in 2014: En­gi­neer­ing, Man­u­fac­tur­ing En­gi­neer­ing and 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 4 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,” Car­los Ghosn, Chair­man and CEO of the Renault-Nissan Al­liance, said.

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 launched also 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, on the CMF-A ar­chi­tec­ture, which covers the small­est and most affordable cat­e­gory of cars.

“With the launch of CMF-A, the al­liance demon­strates its abil­ity to en­ter a very com­pet­i­tive mar­ket such as In­dia, where only a few OEMs suc­ceeded to an­swer the lo­cal cus­tomers’ re­quire­ment for mod­ern and affordable cars,” Ar­naud De­boeuf, Al­liance Sr. VP of Renault-Nissan BV and the Al­liance CEO’s Of­fice, said. By 2020, the Al­liance ex­pects 70% of its ve­hi­cles to be built on CMF ar­chi­tec­tures.

Cross-pro­duc­tion

The cross-pro­duc­tion of ve­hi­cles will con­tinue to be a ma­jor driver of man­u­fac­tur­ing syn­er­gies. Crosspro­duc­tion lever­ages the Al­liance Pro­duc­tion Way, a man­u­fac­tur­ing and shop-floor man­age­ment sys­tem com­mon to Renault and Nissan. The Al­liance Pro­duc­tion Way takes man­u­fac­tur­ing bench­marks from both Renault and Nissan.

In early 2016, Renault an­nounced that it would pro­duce the nextgen­er­a­tion of Nissan’s NV300 van at its plant in San­dou­ville, France. The Nissan NV300 will be man­u­fac­tured on the same line as the new Renault Trafic. By the end of 2016, the Renault plant in Flins, near Paris, will start pro­duc­tion of the new Nissan Mi­cra.

The AVTOVAZ plant in Togli­atti, Rus­sia, is the Al­liance’s big­gest pro­duc­tion base in the world, with ca­pac­ity of nearly 1 mil­lion ve­hi­cles a year. The plant pro­duces ve­hi­cles un­der 4 brands: Lada, Renault, Nissan and Dat­sun. The Al­liance owns a ma­jor­ity stake in the joint ven­ture that con­trols AVTOVAZ, Rus­sia’s largest au­tomaker.

Au­ton­o­mous Drive

The Renault-Nissan Al­liance has an­nounced that it will launch 10 mod­els with Au­ton­o­mous Drive tech­nolo­gies by 2020. This is in line with the Al­liance’s com­mit­ment to tech­no­log­i­cal in­no­va­tion and its fo­cus on the twin goals of zero emis­sions and zero fa­tal­i­ties. The Al­liance has sold more than 340,000 zero-emis­sion ve­hi­cles since 2010.

Renault and Nissan en­gi­neers are work­ing to­gether on the de­vel­op­ment of Au­ton­o­mous Drive, con­nec­tiv­ity and other next-gen­er­a­tion tech­nolo­gies for mass-mar­ket, main­stream ve­hi­cles. By part­ner­ing on ad­vanced re­search and de­vel­op­ment, Renault and Nissan are able to work more ef­fi­ciently, with less cost.

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