Renault And Nissan To Merge From April 1st
|   Thursday, March 20, 2014
The Renault-Nissan Alliance has announced that it will begin to merge operations into four major areas from April 1st in order to achieve annual savings of 4.3 billion euro (6 billion dollars) by 2016. 

- Engineering: Renault and Nissan will combine the modular platform "Common Module Family" advanced research and development of engines (including electric vehicles), testing facilities and services. 

- Production and the management of providers: convergence production functions will cover the overall industrial strategy, manufacturing process engineering, production control and suppliers.


- Acquisitions: Renault and Nissan have integrated procurement organization for more than ten years. But the convergence of engineering and production activities will bring more synergies in procurement and more economies of scale. 

- Human resources: Renault and Nissan teams will implement common HR processes within the Alliance, including the establishment of a "talent management" policy in the company's global operations.

To assist and supervise the development of new organizational structures, a new management committee has been created, headed by Carlos Ghosn. The convergence of business functions will become official on April 1st and is expected to have an immediate and positive effect on operational performance.

The convergence in four key business areas is the final step in the evolution of the Renault-Nissan Alliance which lasted for 15 years; it was formed on March 27, 1999.

Since then, the Alliance has become the longest and most productive cross-cultural collaboration in the automotive industry. The Renault-Nissan Alliance has expanded significantly since its founding, and now is among the four largest car manufacturers in the world. The Alliance has partnerships and joint projects with Daimler, Mitsubishi, AvtoVAZ, Ashok Leyland and Dongfeng.

"Convergence within these four key business functions will result in an immediate increase in efficiency and leverage our size to achieve competitive economies of scale. The synergies will then enable us to deliver higher-value vehicles to customers and stay at the leading edge of innovation" stated Renault-Nissan CEO Carlos Ghosn.

Tsuyoshi Yamaguchi will become head of the technology development, with responsibilities for research and development in engines and vehicles, including future electric cars. He is currently chief of platforms and parts for the alliance.

Shohei Kimura will be responsible for production functions as well as other supply chain issues, including sourcing, manufacturing process engineering and production control. Kimura leads Nissan's vehicle production engineering department.

Christian Vandenhende will be in charge of purchasing for the alliance. He is presently head of the Renault-Nissan Purchasing Organization. In a statement, Renault said that "Convergence of major engineering and manufacturing activities will drive greater purchasing synergies and more economies of scale."

Marie-Francoise Damesin will lead the human resources department, tasked with creating a unified policy of "talent management" in the company's global operations. Damesin is the chief of staff at Renault right now. Additionally, Greg Kelly, chief of Nissan's global human resources, takes on the role of Head of Talent Management.
Investors will very likely view the new measures positively, according to many analysts. Right now, Renault owns 43.4 percent of Nissan, which owns 15 percent of Renault.
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