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Renault-Nissan Alliance Reaches Partnership Goal

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Carlos GhosnWhen Renault bought its controlling share in Nissan in 1999, there were many goals for the newborn partnership. The two brands aspired to work together so that, while both badges would retain their own unique identities, the Renault-Nissan Alliance could save a considerable amount of money by working together to engineer vehicles and purchase resources. Last year alone, Nissan generated €4.3 billion in synergies, reaching their next synergy goal a year earlier than forecast.

To measure “synergies,” Nissan and Renault only count the monetary effects of the new processes for each year. This means that €4.3 billion total in savings came from completely new processes in 2015. According to the two automakers, much of the savings came from the 2014 merging of four areas of their businesses: Human Resources, Purchasing, Engineering, and Manufacturing Engineering & Supply Chain Management.

In terms of technology engineering, Renault and Nissan are saving a lot of money by collaborating on automated driving. As a whole, the Alliance is committed to creating cars that contribute to a world with zero emissions and zero fatalities on the road.

In the case of engineering, Renault and Nissan are committed to using the same common modules upon which to build their vehicles, called Common Module Families (CMF). For example, the CMF C/D platform supports vehicles like the Nissan Rogue, Nissan X-Trail, Renault Talisman, and Renault Espace, just to name a few vehicles.

Using CMFs also means that cars built on the same platforms can potentially be manufactured together. For instance, the similarities between the Nissan NV300 and the Renault Trafic mean that they are built side-by-side in Sandouville, France.

Looking to the future, the Renault-Nissan Alliance expects to create €5.5 billion in synergies in 2018, meaning that the partnership will grow stronger than ever in the coming years.