Renault and Nissan get closer in bid to save £3.7bn

renNissanThe giant automotive Renault-Nissan Alliance is to converge further under its joint chairman and CEO Carlos Ghosn by undertaking projects to enhance performance and achieve at least €4.3 billion (£3.7bn) in cost savings by 2016.

The Alliance has announced that it will study increased convergence in Research & Development, Manufacturing & Logistics, Purchasing, and Human Resources.

Ghosn said: “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. 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.”

A statement from the companies said 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”.

In 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 optimise test facilities globally.

Manufacturing  and logistics projects will focus on how to improve plant performance through more rigorous benchmarking while in HR, joint company teams will launch a project to create a unified “talent management” policy

Renault and Nissan boast “the longest lasting and most productive cross-cultural collaboration in the auto industry”. The companies joined forces in 1999.

Copyright Ken Hurst 2014

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About Ken Hurst

Ken Hurst began his career as a journalist in London over 30 years ago, working on a range of publications before moving on to weekly newspaper production in the newly-independent Zambia of the 1970s. He returned to the UK where his work included spells on newspapers and magazines, before moving to head up Norwich Union’s corporate affairs division. In the 1990s he moved on to freelance, co-own and publish the B2B audio magazine Sound and front the BBC radio Yesterday’s Papers programme. There followed six years as Business Editor at Britain’s biggest selling regional daily newspaper, The Eastern Daily Press, where he led an award-winning team and for whom he still writes a weekly socio/political comment column. Subsequently, he was Group Editorial Director at CBM, responsible for its UK and US magazine output – including The Manufacturer magazine – research-driven industry reports and live events content. Currently he is Contributing Editor at Works Management magazine publisher Findlay Media and Chairman of the consumer publishing house TNT Multimedia Ltd. He is a Fellow of the Royal Society of Arts and of the British Association of Communicators in Business.
This entry was posted in Automotive, Logistics, Manufacturing management, People, R&D, Supply chain and tagged , . Bookmark the permalink.

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