Renault Nissan Alliance is implementing a convergence plan which will result in
a minimum Euro 4.3 billion (Rs 36,542 crore approx.) annual synergy goal by
2016. The convergence will happen in four key areas: Engineering, Manufacturing
& Supply Chain Management, Purchasing, and Human Resources.
needs to be noted that the Alliance has expanded significantly since its
founding and now ranks among the world’s four largest automotive groups by
sales volume. The Alliance has partnerships and joint ventures with Daimler,
Mitsubishi, AvtoVAZ, Ashok Leyland and Dongfeng.
convergence in four key business functions is the latest step in the 15-year
evolution of the Renault-Nissan Alliance, which was formed on 27 March 1999. Since
then, the Alliance has become the longest lasting and most productive
cross-cultural collaboration in the auto industry. The companies have already
integrated several functions, including information technology, logistics,
customs and trade, and purchasing.
converged business functions become official from April1, 2014 and the Alliance
claims that these are expected to have an immediate positive effect on
operational performance. The responsibility of increasing integration in each
function is the responsibility of the newly appointed Alliance Executive Vice
management teams and the boards of Renault and Nissan finalised the convergence
plans following consultations with employee representatives.
within these four key business functions will result in an immediate increase
in efficiency and leverage our size to achieve competitive economies of scale,”
said Renault-Nissan Chairman and CEO Carlos Ghosn. “The synergies will then
enable us to deliver higher-value vehicles to customers and stay at the leading
edge of innovation.”