Long standing alliance partners Renault and Nissan announced yesterday they raised their joint savings goal as the Group strives to deepen cooperation in vehicle development and production departments.
The two companies disclosed that in an improvement over the 4 billion euro target announced back in 2012, when savings amounted to 2.7 billion; now their cooperation would be able to cut costs by at least 4.3 billion euros ($5.8 billion) by 2016.
With Chief Executive Officer Carlos Ghosn in Amsterdam to present the new goals at a two-day internal meeting, Renault and its affiliate Nissan said in a statement they are “focused on improving operational performance”.
“The market has been waiting 14 years for notable synergies to materialize,” Laura Lembke, a London-based Morgan Stanley analyst, said in a recent note to investors. “We think the alliance is finally entering the harvesting phase.”
In a first decision reflecting the deeper cooperation, a Renault plant, located in Flins, near Paris, is due to start the assembly of the Nissan Micra subcompact for Europe in 2016, with a company spokesman saying Renault also plans to move the annual production target from 82,000 to as many as 132,000 vehicles.
The production of the alliance’s first jointly developed mid-size car platform started late last year as Renault-Nissan still trails Volkswagen, Hyundai-Kia or Toyota on platform scale – which takes into account the number of vehicles assembled from a common architecture.