While Fiat and Chrysler are officially targeting a merger, the Renault-Nissan Alliance is getting ready for a deeper integration too, with the two entities reportedly planning to combine manufacturing and research functions in order to save more than 400 billion yen ($3.86 billion) a year.
According to a report from Japan’s Nikkei business daily quoted by Reuters, Nissan and Renault will appoint a manager to oversee the production departments of both carmakers from as early as April, with a similar structure for research and development to follow.
The newly formed structure would allow Nissan and Renault to assemble cars using shared parts at the same plants. The model will be first implemented at the jointly held factory in India as early as 2015 and will expand to more than 10 countries by 2020.
The report also said the Renault-Nissan Alliance, which owns nearly 50 plants globally, plans to include Russian affiliate Avtovaz in the new strategy as well. Nissan declined to comment on the report. The initiative would mark one of the most drastic steps yet in combining the two partners’ resources, something they initially struggled to achieve.
Formed in 1999, the Renault-Nissan partnership generated €2.69 billion ($3.68 billion) of new cost savings in 2012, up from €1.75 billion in 2011. In November 2013 Nissan warned of weaker profits and announced a management change, promoting Chief Competitive Officer Hiroto Saikawa as the de facto No. 2 to oversee R&D, purchasing, manufacturing and the supply chain.
By Dan Mihalascu
PHOTO GALLERY
