Renault-Nissan Alliance Annual Synergies Rise 16% to 5 Billion Euros

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PARIS and YOKOHAMA, July 7 /PRNewswire=KYODO JBN/ --

Shared synergies rise from 4.3 billion Euros to 5 billion Euros in 2016  

Alliance on track to deliver synergies of at least 5.5 billion Euros in 2018  

Engineering, Manufacturing and Purchasing contribute bulk of synergies  

Common Module Family architecture delivers continued benefits  

The Renault-Nissan Alliance today reported a 16 percent increase in synergies

for 2016 compared to 2015.

     (Logo: http://photos.prnewswire.com/prnh/20140130/666713-a )

The Alliance members secured savings, generated incremental revenues and

implemented cost-avoidance measures through the world's leading automotive

partnership.

The value of annualized synergies realized by the Alliance rose to 5 billion

Euros last year, up from 4.3 billion Euros in 2015. Converged operations in

purchasing, engineering and manufacturing contributed most of the 700 million

Euros synergy improvement.

"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," said Carlos Ghosn, chairman and chief executive officer of the

Renault-Nissan Alliance. "We are on track to realize synergies of 5.5 billion

Euros 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 & Supply Chain Management, Purchasing and Human Resources. Each

such functions is led by a common Alliance Executive Vice President.

"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."

In the current year, the Alliance members are expected to introduce more

next-generation technologies in electric vehicles, autonomous driving and

connected cars and will increase commonalities in platforms, powertrain and

parts to boost competitiveness and identify new synergies.

In April 2017, the Alliance created a light commercial vehicle business unit

that will deliver additional synergies in vans and light trucks. The new unit

will maximize shared product development and cross-manufacturing, technology

sharing and cost-reduction, while preserving brand differentiation among

Alliance members.

http://www.media.blog.alliance-renault-nissan.com/news/6621

SOURCE: Renault-Nissan Alliance