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Cosier Nissan, Renault save R42bn

2014-01-24 08:49

BIG SAVINGS FOR RENAULT ALLIANCE: Nissan CEO Carlos Ghosn unveiled the new Qashqai to the world’s new media in London in 2013 - now there's a new deal with Renault. Image: Nissan

TOKYO, Japan - Nissan and Renault are planning save the equivalent of R42-billion a year by tightening their alliance on production, research and development.

Despite their close links and each being chaired by Carlos Ghosn the two automakers have operated largely independently except on parts procurement and engine development.

The plan, reported by Japan's leading Nikkei business daily, would see the appointment in April 2014 of two directors charged with bringing the businesses closer to achieve the costs reduction.


Among the changes would be an effort to make plants more flexible through manufacturing for both brands and the concept's first test would be in 2015 with an existing plant in India assembling 400 000 vehicles made up of both badges.

A similar model would be rolled out in a dozen countries by 2020, the report added.

The move would reportedly make it easier to expand in regions where the other has less presence; Renault's factories are mainly in Europe and the Middle East, Nissan's in Asia, North America and the UK.

The alliance was effected in 1999 though it called for the brands to maintain strict independence.

Over the years, Ghosn has been widely credited with rescuing a nearly bankrupt Nissan, which is now a major global player and Japan's No.2 automaker. Renault, however, has suffered badly and was hard-hit by the European debt crisis.

Read more on:    renault  |  nissan  |  carlos ghosn

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