Nissan Canada

Nissan: Renault-Nissan Alliance Posts Record Synergies of 2.69 Billion Euros in 2012, with Particular Gains in Emerging Markets

  • Synergies adult 54% from 1.75 billion euros in prior year
  • Sharp boost shows partnership’s movement keeps accelerating
  • Purchasing, powertrain and automobile engineering areas sojourn a biggest contributors
  • Synergies approaching to keep flourishing with acceleration in non-engineering areas

PARIS – The Renault-Nissan Alliance posted record synergies of 2.69 billion euros in 2012, adult from 1.75 billion euros in a prior year.

The 54% burst shows that a partnership’s movement continues to accelerate. Formed in 1999, Renault and Nissan suffer a longest-lasting and many prolific cross-cultural partnership in a automobile industry.

Synergies come essentially from cost reductions and cost avoidance. Only new synergies – not accumulative synergies — are taken into comment each year.

Renault and Nissan partnership increasing worldwide, quite in rising markets where both companies are expanding their industrial footprints.

“Synergies and larger economies of scale concede Renault and Nissan to contest in an chosen tier of a world’s tip automakers globally,” pronounced Christian Mardrus, Renault-Nissan Alliance Managing Director for Logistics and a Office of a CEO. “We design to beget even some-more synergies going forward, quite in rising markets such as Brazil, Russia, India and China.”

Purchasing, powertrain and engineering synergies sojourn a tip potential

As in prior years, a tip contributors to synergies by business section in 2012 were purchasing (851 million euros), powertrain (709 million euros) and automobile engineering (546 million euros).

Synergies increasingly come from Asia and rising markets such as Russia, where a dual make vehicles and powertrains together during a same plants.

The Alliance’s plant in Chennai, India, for example, is home to a biggest platform-sharing plan within a Alliance. The plant, that has an annual prolongation ability of 400,000 units, produces both Renault and Nissan vehicles for trade and a internal market.

In Russia, a Alliance builds cars together with AVTOVAZ, Russia’s largest automaker, during a same trickery in Togliatti. Last year, a Alliance gained a determining seductiveness in a builder of a iconic LADA code by a corner try with state-owned Russian Technologies.

In South Korea, Nissan will start building a next-generation Rogue during a Renault Samsung Busan plant subsequent year. Last year, a Alliance done poignant cost improvements to a prolongation routine before a start of prolongation of a sports application vehicle. The improvements will boost prolongation of a Nissan Rogue and will boost potency via a plant.

Since 2009, all purchasing during a Alliance has been rubbed by a Renault Nissan Purchasing Organization – a largest common Alliance organization. Thanks to a 8-million-unit scale of a Alliance, RNPO can negotiate improved pricing than tiny companies could negotiate individually.

Powertrain synergies are subsequent from a co-development and sell of engines and gearboxes. Thanks to their chronological centers of excellence, Renault specializes in diesel and down-sized gasoline engines and primer transmissions, while Nissan specializes in healthy aspirated gasoline engines and involuntary transmissions.

Vehicle engineering synergies are especially subsequent from common platforms and common parts.

Common Module Family

In 2012, a Alliance also began to get synergies from a new proceed called Common Module Family (CMF) that involves a converging of both platforms and parts. The CMF proceed is a common complement that enables Renault and Nissan to combine even some-more closely on products and is approaching to be a vital writer to synergies relocating forward.

CMF will gradually be extended to Renault and Nissan models between 2013 and 2020. CMF will be initial practical to a compress and vast automobile segments, followed by models in other segments.

CMF is approaching to beget an normal 30-40% rebate in entrance cost per indication and a 20-30% rebate in tools cost for a Alliance.

In further to upstream functions, areas such as sales and selling are also approaching to minister to synergies expansion going forward.

The Renault-Nissan Alliance is a vital partnership between Paris-based Renault and Yokohama, Japan-based Nissan, that together sell one in 10 cars worldwide. The companies, that have been vital partners given 1999, sole 8.1 million cars in scarcely 200 countries in 2012. The Alliance also operates vital collaborations with automakers including Germany’s Daimler, China’s Dong Feng, and India’s Ashok Leyland and recently took a infancy interest in Russia’s tip automaker, AVTOVAZ.