Jan. 31 (Bloomberg) -- Renault SA and Nissan Motor Co. raised their goal for combined savings by 7.5 percent as the 15-year-old alliance accelerates cooperation efforts.
The carmakers expect to save “at least” 4.3 billion euros ($5.83 billion) by 2016 by stepping up joint projects in development, manufacturing, purchasing and human resources, the automaking partnership said late yesterday in a statement.
Carlos Ghosn, who is chief executive officer of both Boulogne-Billancourt, France-based Renault and Yokohama, Japan-based Nissan, had previously targeted 4 billion euros in cost savings. The tighter cooperation follows Fiat SpA’s full takeover of Chrysler and its move to create a combined company. The plan goes beyond the Renault-Nissan alliance, which is underpinned by cross-shareholdings.
“Renault and Nissan’s partnership is fundamentally based on mutual respect and an attitude where all ‘win-win’ projects move forward on the fast track,” Ghosn said in the statement. “With the new convergence projects, we will continue on the same path and with the same principles of respect and transparency -- at an accelerated pace.”
Renault has been Nissan’s partner in sales and production since 1999 and owns 43 percent of the Japanese manufacturer, which in turn holds a 15 percent stake in the French carmaker. The alliance generated 2.69 billion euros in savings for the two companies in 2012.
The French carmaker is introducing a modular-production strategy with Nissan to build more vehicles together and lower spending, Renault said in June. Sharing underlying technology will help the carmakers cut engineering and development costs as much as 40 percent and reduce spending on parts more than 20 percent by 2020, Jean-Michel Billig, executive vice president of engineering and quality, said at the time.
New projects are expected to be approved by the two companies by the end of the first quarter, the alliance said.
Renault-Nissan appointed Christian Vandenhende to spearhead new procurement projects. Tsuyoshi Yamaguchi will be in charge of joint research and development efforts. Shouhei Kimura will oversee efforts to streamline the group’s factories, and Marie-Francoise Damesin will look into efforts to combine personnel efforts.
To contact the reporter on this story: Mathieu Rosemain in Paris at firstname.lastname@example.org
To contact the editor responsible for this story: Chad Thomas at email@example.com