Tuesday, July 5, 2016

Renault and Nissan are saving money, but less than expected – Challenges.fr

The Renault-Nissan Alliance says triumphantly, in a statement, having recorded 4.3 billion euros of synergies in 2015, up 13% compared to 2014. With a year ahead of what had officially predicted last year. The main sources of economies of scale purchasing, engineering and manufacturing. “ The convergence has created value by lowering costs by avoiding expenses and increasing our revenues,” highlights the dual CEO Carlos Ghosn. “With convergence, the Alliance should achieve at least 5.5 billion euros of synergies in 2018 , “promised the boss of Renault and Nissan.

the Renault-Nissan Alliance had registered savings scale 1.5 billion in 2009, 2.72 billion euros in 2013, 3.8 billion euros in 2014. The synergies are growing. But … they were very long to come! Because, at the signing of the Alliance agreements in March 1999, Renault and Nissan had forecast no less than 9 billion francs (1.4 billion euros) economies of scale by 2002 and 18 billion … francs (2.7 billion euros) by 2005, an amount that has been achieved eight years later.

Contrary to the hopes cherished initially combine platforms has been very difficult, the requirements of the European market, Asia and USA are very different. The launch of the first vehicles from the modular architecture (platform “ CMF “) of the Alliance, which allows synergies leap in recent years has occurred as late 2013 -early 2014, with the Nissan Qashqai II. This “CMF” only took off with the arrival last year of the Renault Espace, Qajar, Talisman. In 2016, there are the new Mégane and Scénic.

These models have at least 50% of common parts (by value). Finally ! More than 2 million vehicles expected to be produced annually on this basis. This platform is particularly industrialized Japan, France (Douai), Great Britain (Sunderland), Spain (Palencia), Korea (Busan) and China (Wuhan). A true global program. It was time.

“Our modular architecture (CMF) remains the synergies of the engine in all major branches of our activity” , recently emphasized Carlos Ghosn. The two partners are also engaged in a promising new joint project, that of the platform “CMF-A” for vehicles at very low costs. Renault Kwid was launched in September 2015 in India with a base price of less than 4,000 euros. With the key 150,000 orders so far.

Datsun, the entry-level brand of Japanese automaker Nissan, for its part launched in June its Redi-Go, a Kwid rebodied. Renault will also be industrialized in late 2016 in Brazil. It should also be produced in Iran, then arrive in Europe under the Dacia label, according to our information. The Alliance will also decline the range with a 4×4 made out for 2017 and a classic four-door sedan with a separate trunk. With their future derivatives, Redi-Go and Kwid be “a very big contributor to volumes,” by Renault . This time, synergies are parties.

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