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Renault-Nissan Alliance posts record €3.8 billion in synergies in 2014

By Swati Sanyal Tarafdar,

Added 13 July 2015

Purchasing, engineering and manufacturing are biggest contributors to synergies; Common Module Family (CMF) drives synergies in all major areas; Convergence of key functions in 2014 accelerates synergy momentum

In 2015, Renault will launch the Kwid in India. The Kwid is the first Alliance car built on the CMF-A architecture and will be produced at the Renault-Nissan plant in Chennai. Datsun will launch a vehicle on the same platform in 2016.

By 2020, the Alliance expects 70 percent of its vehicles to be built on CMF architectures.

Cross production

The cross production of vehicles is also a major driver of manufacturing synergies. Cross production is expected to accelerate across the Alliance following the rollout of the Alliance Production Way (APW) at all plants around the world by the end of 2015.

The APW manufacturing system is the result of best practice sharing throughout the organization and allows plants to make better use of their capacity by enabling them to produce both Renault and Nissan vehicles.

In 2014, Nissan began production of the Rogue crossover in Renault's plant in Busan, South Korean, to meet stronger-than-expected demand in the U.S.

The AVTOVAZ plant in Togliatti, Russia, is the Alliance's biggest production base in the world with capacity of nearly one million vehicles per year. The plant produces vehicles under four brands - Lada, Renault, Nissan and Datsun. The Alliance owns a majority stake in the joint venture that controls AVTOVAZ, Russia's largest automaker.

Contribution from other business areas, including sales and marketing

The Alliance is increasingly benefitting from synergies in other areas, such as sales and marketing. For example, thanks to the Alliance, Renault and Nissan are able to offer customers an extensive range of vehicles around the world. In 2014, the Alliance signed global contracts with several fleet customers, including multinational food-products corporation Danone.

About the Renault-Nissan Alliance

The Renault-Nissan Alliance is a strategic partnership between Paris-based Renault and Yokohama, Japan-based Nissan, which together sell one in 10 cars worldwide. The companies, which have been strategic partners since 1999, sold 8.5 million cars in nearly 200 countries in 2014.

The Alliance also operates strategic collaborations with other automakers including Germany's Daimler, China's Dongfeng, Mitsubishi Motors and India's Ashok Leyland. The Alliance has majority stake in the joint venture that owns Russia's top automaker AVTOVAZ.

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