Carlos Ghosn, the chief executive officer of both France’s Renault and Japan’s Nissan, says the alliance’s strategy to lower expenses through growing synergies is fruitful and the long-term cost savings goals can be achieved without additional partnerships or the expansion of current alliances.
According to the top executive, the duo managed to save “much more” than 3 billion euros ($3.31 billion) in 2014 by jointly developing new vehicles and technologies, up from 2.8 billion euros during the year before – the final figures for the “synergies” are scheduled to be revealed in July. Nissan and Renault are hard at work increasing the cost savings by jointly developing new cars and trucks, including electric vehicles, rendering them competitive across the industry and without the need for an additional partner or tie-up, with the internal goal of saving 4.3 billion euros each year in 2016. The Renault Nissan alliance has been disclosing the total savings incurred from their partnership as an indicator of strength of the two carmakers – with the advantages stemming from the broad range of collaborations on research and development of new vehicles and technologies such as driverless systems.
The alliance was established back in 1999 when the French partner saved Nissan from the brink of collapse, with a cross shareholding deal that saw Renault own 43.4 percent of Nissan, and in turn the Japanese automaker has 15 percent of the French carmaker, though without any voting rights. Today, Nissan has managed to outshine its partner, delivering around two thirds of the circa eight million autos sold by both.