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Renault-Nissan Alliance To Combine Manufacturing And R&D
The French and Japanese automakers, Renault and Nissan, who also operate as the Renault-Nissan Alliance in many countries, have decided to take their partnership several steps further by combining their manufacturing and research & development facilities. This deep integration will reportedly allow the Alliance to save over $4 billion, according to Reuters who quoted Japan's Nikkei business daily.
This means both automakers will manufacture vehicles that not just share platforms but also components as they will be manufactured under the same roof using shared resources and infrastructure. Shared R&D will also mean their technology will evolve together. In more than one way, Renault & Nissan could then be considered a single entity.
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The process could begin as soon as April with Renault-Nissan Alliance CEO Carlos Ghosn appointing a manager who will oversee the combined production department. Similar arrangements will be made for the R&D department as well.
The new structure will first be put to test in the Alliance's shared facility in Chennai, India as early as 2015. This will then be implemented in over 10 countries by the year 2020. The Alliance will also bring Avtovaz, the makers of Lada, into the fold as it owns a majority stake in the Russian company.
The Renault-Nissan Alliance was formed in 1999 and together it owns about 50 factories globally. The Alliance has proved profitable for both entities who saved 2.69 billion euros in 2012, which was up from 1.75 billion euros cost savings in 2011.
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