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The alliance Renault-Nissan is deepened

For admin · 31.05.09 · Category: Companies, Renault, Last News
www.thestreetpros.com 244 h=x renaultnissan The alliance Renault Nissan is deepened

From 1999, Renault and Nissan have developed an alliance that has created a significant value for two companies. The achievements include platforms and shared engines, cooperation with regard to high technologies, standardization of methods of manufacture, expansion of the scale of products and the expansion of the fame of every mark. The joint sales of vehicles have increased of 4,9 million units in 1999 to 6,9 millions in 2008 (between what Avtovaz is included), what does of the Alliance Renault-Nissan the third group self-propelled of the world.

“During the last decade, we use to the Alliance to develop synergies win-win between Renault and Nissan, and with this approach one work in an effective way when both companies were profitable and were in growth”, points out Carlos Ghosn, President and CEO of the Alliance Renault-Nissan. “Today we have to move more rapid. To look for synergies is already not an option, it is an obligation. We have assigned a group of experts so that it is focused in the creation of more synergies to cross the crisis and for posicionarnos in a competitive way for the future”.

In the current economic context, the cooperation between two companies will hasten. The target established for 2009 is a € 1.500 millions in synergies divided equitably between two members of the Alliance. These synergies are organized of the following way:

- Manufacture and logistics one hopes that they should represent € 363 millions of the whole of the due synergies. The members of the Alliance will keep on sharing the manufacture facilities to benefit from the local industrial opportunities, from the manufacture in local coins and from the optimization of the existing capacity in the factories. In 2009, for example, the Renault plant in Brazil will produce two additional Nissan vehicles while the Nissan factories in South Africa will make two additional Renault vehicles. Towards the end of 2009, there will be a whole of 11 made vehicles of a crossed way. As for logistics, savings will be generated both in the internal and external logistics on having shared centers CKD (pieces ready for the assembly) additional, vehicles components and standardizing flows, in particular in Europe.
- Motores generates a whole of € 289 millions in synergies. The members of the Alliance will promote the cooperation in the engines exchange to the co-ownership of the family of engines, what will generate savings in the costs of development, buys and manufacture. An example is the development of new small engines, turboalimentados of fuel, taking engines Nissan as a base. Till now, about 50 % of the components of engines is shared.
- Vehicles engineering represents € 279 millions of the whole of synergies across the use of common platforms and interchangeable components. At present the common and shared platforms represent 70 % of the volume of production of the Alliance. For example, Renault and Nissan glide to use a common platform for a project of entry of scale in India. The use of interchangeable components on vehicles Renault and Nissan is an increasing saving source. For example, component only one central of the system of air conditioning will be used in 24 bodyworks variants in the platforms B and C.
- The synergies in Buys will generate savings of € 157 millions. From April, 2009, the Organization of Buys Renault-Nissan has dealt with 100 % of the requests of buys of the Alliance. To the date, the focus has put itself on parts and prime matters, but the scope is expanding to the services buy. The examples of synergies include opportunities in the supply of brakes and the increase of the sourcing of Nissan in Korea to impel the providers' Renault/Samsung network. One hopes that more savings should be generated since two companies reduce the diversity of the parts of his scale.
- The synergies of Sales and Marketing represent € 147 millions of the whole of synergies. In the means buy, for example, today only one company handles so much the accounts of Renault like those of Nissan in Europe.
- one hopes that Investigation and high technology should generate savings for € 115 millions, since two companies coordinate efforts to eliminate the superpositions and to improve the resource allocation. For example, so much the electrical vehicles of Renault as those of Nissan will be equipped by batteries developed as a whole. The vehicle of cells of fuel of Renault, presented last year, uses the technology of cells of fuel of Nissan. Two companies also will unite his efforts with regard to the technologies related to the emission of CO2, life on board, safety and dynamic performance.
- Light utilitarian vehicles it represents € 102 million identified synergies. For example, two members of the Alliance agreed to advance recently towards a common platform in Europe to create two different light utilitarian vehicles.
- Information systems and functions support supreme € 48 million identified synergies. In Europe, two members of the Alliance will intensify the use of available common internal resources in IS/IT. Both Allied Forces will consolidate his infrastructure of network of information.

Today the Alliance gives to Renault and to Nissan the only competitive advantage in a sector struck by the global economic crisis. To maximize the know-how gained after 10 years of intercultural management and of shared experiences, the Alliance has established a special team of six persons of Nissan and five of Renault. From June 1, they will apply his deep knowledge of both companies to encourage the synergies in all the levels and to impel the major put one together and standardization, not only in 2009, but also for the future.
This special team of the Alliance will center on the following areas identified like priorities: Buys, Sourcing Global, Platforms and Common, Motive Reports, Functions Support, Global Logistics, IS/IT, Investigation and High technologies and Business Zero Emission.
The Alliance has been a tool to achieve a better performance, based on the confidence achieved after 10 years of work as a whole. To accelerate the synergies and to support them with a team dedicated specially to them, will help both companies to guide the current crisis and to go out of her more strengthened and competitive.


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