Renault and Nissan to Converge Four Major Alliance Functions

    --  To achieve a minimum €4.3 billion annual synergy goal,
        the Alliance is implementing convergence plans in four key
        areas: Engineering, Manufacturing & Supply Chain Management,
        Purchasing, and Human Resources.
    --  Converged business functions become official 1 April and are
        expected to have an immediate positive effect on operational
    --  Newly appointed Alliance Executive Vice Presidents will take
        charge of increasing integration in each function.

AMSTERDAM, March 17, 2014 /CNW/ - The Renault-Nissan Alliance today announced 
it will begin implementing convergence initiatives in four key operational 
areas starting 1 April, with the goal of achieving at least €4.3 billion in 
annualized synergies by 2016.

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Management teams and the boards of Renault and Nissan finalized the 
convergence plans following consultations with employee representatives. The 
Alliance initially launched convergence study projects in late January in four 
key areas: Engineering, Manufacturing & Supply Chain Management, Purchasing, 
and Human Resources.

Under the plan, these functions will be jointly managed by Renault and Nissan, 
with a newly appointed Alliance Executive Vice President leading each 
function, and a new management committee to oversee implementation.

"Convergence 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."

Four  Converged  Alliance  Functions  with  New  Leaders
    --  Engineering: Renault and Nissan will combine Common Module
        Family engineering, advanced research, powertrain development
        (including electric vehicles), systems engineering and testing
        facilities and services. Tsuyoshi Yamaguchi, Alliance Director
        of Platforms and Parts, is appointed Alliance Executive Vice
        President, Alliance Technology Development, for the new
        converged Alliance function.
    --  Manufacturing Engineering & Supply Chain Management: The new
        Alliance converged manufacturing function will cover global
        industrial strategy (including sourcing), production process
        engineering, production control and supply chain management.
        Shohei Kimura, Nissan Corporate Vice President for Vehicle
        Production Engineering, is appointed Alliance Executive Vice
        President, Manufacturing Engineering and Supply Chain
    --  Purchasing: Renault and Nissan have enjoyed an integrated
        purchasing organization for more than a decade. But convergence
        of major engineering and manufacturing activities will drive
        greater purchasing synergies and more economies of scale.
        Christian Vandenhende, Managing Director of the Renault-Nissan
        Purchasing Organization, is appointed Alliance Executive Vice
        President, Alliance Purchasing.

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SOURCE  Renault-Nissan Alliance 
MEDIA CONTACT:Mia Nielsen, Renault-Nissan Alliance Communications,, +33(0)6-10-83-31-33 
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CO: Renault-Nissan Alliance
ST: Netherlands
-0- Mar/17/2014 10:39 GMT
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