Renault and Nissan to Squeeze More Savings Out of Alliance

A lot has changed since the alliance between Nissan and Renault started 10 years ago. Due to the large operating costs currently faced by automakers all over the world, Carlos Ghosn, CEO of both automakers, has assigned a task force to get more savings out of shared vehicle platforms, assembly plants, and purchases.

The group has been given the task of coming up with $2.11 billion in combined savings for 2009. “We want to make sure that we are making the maximum out of our association,” says Ghosn.

Nissan and Renault’s shared purchasing activity is already being handled by an alliance office. Now, under the new directive, the office will expand to handle jointly purchased company services, and also step up acquisitions from Korea. The expansion is expected to save $221.7 million of the two companies’ global purchasing total.

Two Nissan vehicles will also be put into production at a Renault assembly plant in Brazil as part of the plan. The move will allow Nissan to expand into the South American with less expense. In the end, 11 vehicles will be “cross-manufactured” by the end of 2009.

Source: Automotive News