Nissan, Renault combine engineering activities

March 17, 2014 // By Christoph Hammerschmidt
Accounting for the huge investments for automotive R&D, Japanese carmaker Nissan and its French alliance partner Renault will combine a range of activities, including development of certain electronics modules and electric powertrains. The move will lead to cost reductions of € 4.3 billion or more per year, the companies said.

According to the plan, Renault and Nissan will combine Common Module Family engineering, advanced research activities, development of powertrains and testing facilities. The joint activities in powertrain development will include - and most likely in the future be focused on - electric powertrains.

The companies will also converge major aspects of their manufacturing activities, such as production process engineering, production control and supply chain management and global industry strategy, whereas the latter one includes sourcing. For already more than a decade, Nissan and Renault are already running a joint purchasing organisation. Nevertheless, the convergence of activities as large as engineering and manufacturing will drive greater purchasing synergies and more economies of scale, the companies said.

In addition, the alliance partners will also combine their HR activities in that they will establish common HR processes across both companies. This includes a unified talent management policy.

To assist with the development of deployment of the new organisational structure, a new Management Committee Alliance will be established, headed by Renault-Nissan Chairman and CEO Carlos Ghosn. The implementation of the new structures will start as early as April.

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