Renault and Nissan Strengthen Corporate Ties

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Renault and Nissan Strengthen Corporate Ties

Nissan and French automaker Renault have been joined at the hip for close to 20 years, but the companies are moving to further strengthen their long-term relationship.

The two firms are looking to take advantage of more synergies in a bid to increase efficiency and improve profits. They’re planning on converging things like engineering, manufacturing, supply-chain management and more.

Some of what they’re gunning to do includes adopting common processes, exchanging talent and sharing resources. By implementing similar ideas they’ve already generated more than €4 billion in synergies during the last calendar year.

By further optimizing their business relationship, Renault and Nissan are expected to generate about €5.5 billion in synergies by the year 2018, which is a huge savings. Naturally, money that’s not wasted can be spent on developing exciting new products that impact drivers around the world.

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Renault and Nissan executives have to present these plans to the appropriate employee representation and corporate decision-making bodies for approval before anything becomes official.

This corporate maneuvering makes perfect sense. If two companies can avoid the waste inherent in duplicated work the savings can be huge. But the real question is, why haven’t they done this more aggressively over the last two decades? With the automotive business more competitive than ever maybe they’re just looking for every opportunity to improve.

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  • Mike

    This is exactly why Nissan quality has taken such a huge nosedive the past decade. Garbage.