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.
Discuss this story on our Nissan Forum.
Born and raised in metro Detroit, Craig was steeped in mechanics from childhood. He feels as much at home with a wrench or welding gun in his hand as he does behind the wheel or in front of a camera. Putting his Bachelor's Degree in Journalism to good use, he's always pumping out videos, reviews, and features for AutoGuide.com. When the workday is over, he can be found out driving his fully restored 1936 Ford V8 sedan. Craig has covered the automotive industry full time for more than 10 years and is a member of the Automotive Press Association (APA) and Midwest Automotive Media Association (MAMA).
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