Renault and Nissan alliance to accelerate co-operation

Renault and Nissan Motor raised their goal for combined savings by 7.5 per cent as the 15 year-old alliance accelerates co-operation efforts. The carmakers expect to save "at least" €4.3 billion by 2016 by stepping up joint projects in development, manufacturing, purchasing and human resources, the automaking partnership said yesterday.

Carlos Ghosn, chief executive of both Renault and Nissan, had previously targeted €4 billion in cost-savings. The tighter co-operation follows Fiat's full takeover of Chrysler and its move to create a combined company. The plan goes beyond the Renault-Nissan alliance, which is underpinned by cross-shareholdings.

“Renault and Nissan’s partnership is fundamentally based on mutual respect and an attitude where all ‘win-win’ projects move forward on the fast track,” Ghosn said. “With the new convergence projects we will continue on the same path and with the same principles of respect and transparency – at an accelerated pace.”

Renault has been Nissan’s partner in sales and production since 1999 and owns 43 per cent of the Japanese manufacturer, which in turn holds a 15 per cent stake in the French carmaker. The alliance generated €2.69 billion in savings for the two companies in 2012.

The French carmaker is introducing a modular-production strategy with Nissan to build more vehicles together and lower spending, Renault said.