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Renault-Nissan, the example that synergies between brands are key to successfully survive the current market

Automotive News

Synergies increased by 16% to 5 billion
Share parts and manufacturing plants, benefit from technological innovations, set up common logistics … These are some of the benefits brought by the unions between automobile manufacturers, who see here an opportunity to increase the volume of business and, over All, to save costs. Well know the two members of the alliance Renault-Nissan, which has joined Mitsubishi Motors only a few months ago.

The value of annual synergies generated by the alliance has increased to € 5 billion in 2016, up from € 4.3 billion achieved in 2015. Joint procurement, engineering and manufacturing operations have contributed to most of the An improvement of EUR 700 million in synergies.

In this respect, Carlos Gohsn is clear: “The growing cooperation is very beneficial, which is reflected in the achievement of economies of scale, technological advances and innovations that are being shared by member brands. Increased synergies are helping To Renault, Nissan and now Mitsubishi Motors to meet their financial goals and provide vehicles of high value to customers in the new era of mobility. ”

The key, undoubtedly, lies in the cross-production of vehicles as the main axis of manufacturing synergies. This type of production is materialized in this case in the CMF (common module family) platform of the alliance, which was designed in 2013 and has since given life to a multitude of different models. Some of the best known in our market are: Renault Scénic, Renault Mégane, Nissan Qashqai, Nissan X-Trail, Renault Espace, Renault Kadjar and Renault Talisman. All of them start from the same modular platform based on five sets of interchangeable components that allow to create models as diverse as those just mentioned.

In the case of Mitsubishi, the conglomerate expects to generate additional synergies through joint purchases and logistics, as well as greater localization, common use of plants, platforms and technologies in both consolidated and emerging markets.

So much trust the alliance in this system that, according to its forecasts, in 2020 70% of its vehicles will be built on the CMF architecture. The idea is to achieve a cost savings in purchases of up to 30% and engineering costs by 40%.

Jorge Arenas10 / 07/2017 (Translation Soft)

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