http://www.auto-types.com/autonews/renault-and-nissan-to-merge-from-april-1st-11391.html
Renault And Nissan To Merge From April 1st
By Mark Curtis  March 20, 2014  Marie-Francoi

The Renault-Nissan Alliance has announced that it will begin to merge
operations into four major areas from April 1st in order to achieve annual
savings of 4.3 billion euro (6 billion dollars) by 2016.

- Engineering: Renault and Nissan will combine the modular platform “Common
Module Family” advanced research and development of engines (including
electric vehicles), testing facilities and services. 

- Production and the management of providers: convergence production
functions will cover the overall industrial strategy, manufacturing process
engineering, production control and suppliers.

- Acquisitions: Renault and Nissan have integrated procurement organization
for more than ten years. But the convergence of engineering and production
activities will bring more synergies in procurement and more economies of
scale. 

- Human resources: Renault and Nissan teams will implement common HR
processes within the Alliance, including the establishment of a “talent
management” policy in the company's global operations. 

To assist and supervise the development of new organizational structures, a
new management committee has been created, headed by Carlos Ghosn. The
convergence of business functions will become official on April 1st and is
expected to have an immediate and positive effect on operational
performance.

The convergence in four key business areas is the final step in the
evolution of the Renault-Nissan Alliance which lasted for 15 years; it was
formed on March 27, 1999.

Since then, the Alliance has become the longest and most productive
cross-cultural collaboration in the automotive industry. The Renault-Nissan
Alliance has expanded significantly since its founding, and now is among the
four largest car manufacturers in the world. The Alliance has partnerships
and joint projects with Daimler, Mitsubishi, AvtoVAZ, Ashok Leyland and
Dongfeng.

“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. The synergies will then enable us to deliver
higher-value vehicles to customers and stay at the leading edge of
innovation” stated Renault-Nissan CEO Carlos Ghosn. 

Tsuyoshi Yamaguchi will become head of the technology development, with
responsibilities for research and development in engines and vehicles,
including future electric cars. He is currently chief of platforms and parts
for the alliance.

Shohei Kimura will be responsible for production functions as well as other
supply chain issues, including sourcing, manufacturing process engineering
and production control. Kimura leads Nissan’s vehicle production engineering
department.

Christian Vandenhende will be in charge of purchasing for the alliance. He
is presently head of the Renault-Nissan Purchasing Organization.  In a
statement, Renault said that “Convergence of major engineering and
manufacturing activities will drive greater purchasing synergies and more
economies of scale.”
[© 2014 Auto Types.]




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