Re­nault-nis­san vows to dou­ble syn­er­gies in con­ver­gence push

Daily Mirror (Sri Lanka) - - FOREIGN -

The Re­naultnis­san al­liance pledged yes­ter­day to dou­ble sav­ings from closer in­te­gra­tion to 10 bil­lion eu­ros (US $ 11.9 bil­lion) by 2022, thanks in part to in­creas­ing co­op­er­a­tion with re­cently ac­quired Mit­subishi Mo­tors.

Com­bined an­nual sales vol­umes are ex­pected to rise to 14 mil­lion ve­hi­cles over the same five-year pe­riod from about 10 mil­lion to­day, with rev­enue ad­vanc­ing by one-third to US $ 240 bil­lion, the al­liance said in a state­ment.

With 5.27 mil­lion cars and vans de­liv­ered in the first half, ahead of Volk­swa­gen and Toy­ota, Re­naultnis­san now claims the man­tle of the world’s big­gest car­maker although par­ent Re­nault has never con­sol­i­dated the sales of its 43.4 per­cent-owned Ja­panese af­fil­i­ate into its own. Al­liance Chair­man Car­los Ghosn has pledged to step up the pace of in­te­gra­tion since Nis­san took a con­trol­ling stake in Mit­subishi last year. The 18-yearold Re­nault-nis­san pair­ing has only re­cently be­gun rolling out cars on com­mon ar­chi­tec­tures.

Un­der ex­ist­ing plans, the al­liance is seek­ing to in­crease syn­er­gies - from costs cut or avoided and rev­enue en­hance­ments - to 5.5 bil­lion eu­ros next year from 5 bil­lion recorded in 2016.

A fourth com­mon ve­hi­cle plat­form will be shared across the al­liance by 2022, the com­pa­nies said yes­ter­day, pro­vid­ing the un­der­pin­nings for a fu­ture gen­er­a­tion of elec­tric cars.

Twelve new pure-elec­tric mod­els will be launched by that date as Re­nault-nis­san seeks to de­fend the head-start it took with the cur­rent gen­er­a­tion of bat­tery cars, spear­headed by the Nis­san Leaf and Re­nault Zoe, as more com­peti­tors join the fray.

“With­out a doubt, what we have seen and acted on and ex­e­cuted eight years ago is be­com­ing main­stream,” Ghosn told re­porters at a pre­sen­ta­tion in Paris.

As more mod­els are launched on the new plat­forms by Re­nault, Nis­san, Mit­subishi and their other brands, shared ar­chi­tec­tures will ac­count for 70 per­cent of sales by 2022, with com­mon en­gines in­stalled in 75 per­cent.

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