Nissan and Renault have set their target for cost synergies in 2018 through cost saving measures due to their partnership and increased sales at 5.5 billion Euro, a 28% increase over their track record from 2015.
This was made clear during an interview with Anaud Deboeuf, Senior Vice President and head of the alliance between the two companies, with Japanese reporters. Renault and Nissan had set a mid-range synergy target of 4.3 billion Euro for FY 2016, but as they were able to achieve this during FY 2015 (a 13% increase in cost efficiency over the previous year), the company decided to set a new goal.
In April 2014, the two companies began planning means to functionally integrate their 4 departments of research and development, production technology and logistics, sales, and HR in an attempt to accelerate synergizing of the two companiesâ€™ costs. During the same year, the companies also began active pursuit of investment into development of their concept vehicle, the CMF (Common Module Family), that is based on a sharing of design ideas between Nissan and Renault.
The breakdown of the cost saving by the two companies sees Nissan with 2.5 billion and Renault with 18 billion Euro. Debeouf validated these efforts as â€œa successful functional integration of 4 departments and a maximization of synergy.â€
[Translated by Bryce Clarke]