Renault Nissan increases alliance savings image

The French and Japanese companies announced that as the first models jointly developed on common architectures were introduced to the production lines, the alliance savings were boosted last year, reaching a 6.7% increase in 2013.

An alliance issued statement showed that its savings grew to 2.87 billion euros ($3.91 billion) in 2013, as opposed to 2012’s 2.69 billion – with Executive Vice President Christian Mardrus adding the duo aims to further expand the savings to 3.5 billion for 2014. Back in January, Renault and its 43.4 % owned Nissan partner forecasted the alliance would reach cost savings of 4.3 billion euros in 2016.

While Renault and Nissan have been in partnership for 15 years, the alliance lags behind Volkswagen and Toyota (rivals it wants to catch up to in the mid term) when it comes to platforms – eg. the models manufactured from a common base architecture. It also has only recently accelerated cost savings, as Chief Executive Carlos Ghosn also aims to further integrate and combine major operations like manufacturing, development, purchasing and human resources.

The alliance’s first jointly developed mid-size model platform – titled CMF – saw Nissan launching last year production of vehicles based on it, while Renault only this year is expected to introduce its first car based on it – the successor to the old Espace minivan.

Via Reuters