Renault-Nissan Alliance Annual Synergies Rise 16% to EUR5 Billion

Automotive Press Releases Tuesday July 11, 2017 08:26
PARIS and YOKOHAMA, Japan--11 Jul--PRNewswire/InfoQuest
  • Shared synergies rise from EUR4.3 billion to EUR5 billion in 2016
  • Alliance on track to deliver synergies of at least EUR5.5 billion in 2018
  • Engineering, Manufacturing and Purchasing contribute bulk of synergies
  • Common Module Family architecture delivers continued benefits
The Renault-Nissan Alliance today reported a 16 percent increase in synergies for 2016 compared to 2015.
(Logo: http://photos.prnewswire.com/prnh/20140130/666713-a )
The Alliance members secured savings, generated incremental revenues and implemented cost-avoidance measures through the world's leading automotive partnership.

The value of annualized synergies realized by the Alliance rose to EUR5 billion last year, up from EUR4.3 billion in 2015. Converged operations in purchasing, engineering and manufacturing contributed most of the EUR700 million synergy improvement.

"The growing cooperation across the Alliance is delivering strong benefits for the members of the Alliance, reflected by the economies of scale, technological breakthroughs and innovations that are being shared between Renault and Nissan," said Carlos Ghosn, chairman and chief executive officer of the Renault-Nissan Alliance. "We are on track to realize synergies of EUR5.5 billion in 2018, even before taking into account the contributions from Mitsubishi Motors, our new Alliance partner."

With the addition of Mitsubishi Motors, which became the third full member of the Alliance at the end of 2016, annual sales have reached 10 million units. The addition of Mitsubishi Motors comes two years after Renault and Nissan deepened their partnership by converging four key functions: Engineering, Manufacturing & Supply Chain Management, Purchasing and Human Resources. Each such functions is led by a common Alliance Executive Vice President.

"We continue seeing tangible results of this major convergence," added Mr. Ghosn. "Our growing synergies are helping Renault, Nissan and now Mitsubishi Motors meet their financial objectives and deliver higher-value vehicles to customers in the new era of mobility."

In the current year, the Alliance members are expected to introduce more next-generation technologies in electric vehicles, autonomous driving and connected cars and will increase commonalities in platforms, powertrain and parts to boost competitiveness and identify new synergies.

In April 2017, the Alliance created a light commercial vehicle business unit that will deliver additional synergies in vans and light trucks. The new unit will maximize shared product development and cross-manufacturing, technology sharing and cost-reduction, while preserving brand differentiation among Alliance members.

http://www.media.blog.alliance-renault-nissan.com/news/6621
Source: Renault-Nissan Alliance

Latest Press Release

BMF 2018 great celebrates a decade.

16 world renowned motorcycle brands congratulate the greatness with expecting over 650 machines booking. "Bangkok Motorbike Festival 2018" (BMF 2018) the greatest motorcycle festival in South East Asia has great celebrates a decade; 16 world renowned...

Honda maintains No. 1 position in passenger car sales for third year in a row, achieves Trusted Brand Award for sixth year in a row, and moves forward to develop automobiles and services in return for customers who put their trust in the Honda brand.

Honda Automobile (Thailand) Co., Ltd. has retained the No. 1 position in Thailand's passenger car market for the third year in a row, with cumulative sales for 2017 of 127,768 units (including the Honda BR-V, HR-V, and CR-V) and captured a 32.2% market...

Mazda continued growth in Thai market with sales of 52,000, 21% increased, revealing Innovative technology added all new models

Mazda Sales (Thailand) Co. Ltd. has revealed its successful business performance for 2017, and is confident that the Thai automobile market will return to an active state in 2018 due to several positive factors. Mazda is preparing to introduce 4 new...

Goodyear Privileges for Any Consumer That Purchases Any Set of 4 Goodyear Tires Will Receive Worry Free Assurance Program

Goodyear Thailand welcomes the New Year by providing customer privileges throughout the year 2018. Consumers who purchase any set of four Goodyear tires and register through the website at www.goodyear.co.th/wfa, will be able to enjoy a complimentary...

PTT joins hands with Yamaha and Penguin SIM to launch #Fill up Gas and Get Triple Bonus campaign for motorcycle riders Filling up gas tank at PTT gas station and get free call internet and chance to win 50 Yamaha FINN motorcycles

PTT joins hands with Yamaha and Penguin SIM to launch 'Fill up Gas and Get Triple Bonus' campaign for motorcycle riders Filling up gas tank at PTT gas station and get free call & internet and chance to win 50 Yamaha FINN motorcycles Special offer...

Related Topics