THE RENAULT-NISSAN Alliance has reported a 16 percent increase in synergies for 2016 compared to 2015.
The world’s leading automotive partnership enabled members to secure savings, generate incremental revenues and implement cost-avoidance measures.
The value of annualised synergies realised by the Alliance rose to €5 billion last year, up from €4.3 billion in 2015. Converged operations in purchasing, engineering and manufacturing contributed most of the €700 million synergy improvement.
Carlos Ghosn, Chairman and Chief Executive Officer of the Renault-Nissan Alliance, said: “The growing cooperation across the Alliance is delivering strong benefits for the members of the Alliance, reflected by the economies of scale, technological breakthroughs and innovations that are being shared between Renault and Nissan,”
“We are on track to realise synergies of €5.5 billion in 2018, even before taking into account the contributions from Mitsubishi Motors, our new Alliance partner.”
With the addition of Mitsubishi Motors, which became the third full member of the Alliance at the end of 2016, annual sales have reached 10 million units. The addition of Mitsubishi Motors comes two years after Renault and Nissan deepened their partnership by converging four key functions: Engineering, Manufacturing and Supply Chain Management, Purchasing and Human Resources.
“We continue seeing tangible results of this major convergence,” added Mr. Ghosn. “Our growing synergies are helping Renault, Nissan and now Mitsubishi Motors meet their financial objectives and deliver higher-value vehicles to customers in the new era of mobility.”