Renault Nissan alliance to cut costs through extensive synergies image

Renault Chief Competitive Officer Thierry Bollore has been tasked by chief executive officer Carlos Ghosn to increase the combined effort made by the French automaker and its Japanese alliance partner Nissan.

He is Renault’s No. 2 alongside Chief Performance Officer Jerome Stoll, the chief of sales and marketing. Bollore is tasked to oversee product development, manufacturing and the supply chain. The first step is to bring 70 percent of alliance models on the so-called common module family (CMF) platforms by 2020 and Bollore says they already use CMF A through D, with the only model outside on its own frame being the Twingo – a car developed in cooperation with Daimler.

With the added benefit that the company wants to have the largest possible ratio of common parts and common part numbers, the CMF platforms also allow for lower purchasing costs from suppliers. So far, the company is making each generational change count, with the Nissan Qashqai and Renault Espace on the CMF C-D and a new model to be built in India in 2015 on the CMF A.

Renault-Nissan has a “convergence plan” that calls for the close integration of engineering, manufacturing, purchasing and human resources – with envisioned savings from the unity seen as rising to 4.3 billion euros by 2016 from 2.8 billion euros in 2013. According to Bollore, since last November when the process started, the companies have already managed to integrate a big part of the divisions, aiming to lower production and development costs and further expand into emerging markets, including China.

Via Automotive News Europe