If you didn’t know, Renault and Nissan formed an alliance back in 1999 to push research in four areas: Engineering, Manufacturing & Supply Chain Management, Purchasing, and Human Resources.
This Renault-Nissan alliance will begin to converge initiatives starting 1 April, with the goal of achieving at least 4.3 billion euros in annualised synergies by 2016. That’s a huge amount of money for any manufacturer.
Management teams and the boards of Renault and Nissan will have functions jointly managed with an appointed Alliance Executive Vice President leading each function, and a new management committee to oversee its implementation.
What does this mean? Well hopefully below will give you a better understanding:
- Engineering: Renault and Nissan will combine Common Module Family engineering, advanced research, powertrain development (including electric vehicles), systems engineering and testing facilities and services. Tsuyoshi Yamaguchi, Alliance Director of Platforms and Parts, is appointed Alliance Executive Vice President, Alliance Technology Development, for the new converged Alliance function.
- Manufacturing Engineering & Supply Chain Management: The new Alliance converged manufacturing function will cover global industrial strategy (including sourcing), production process engineering, production control and supply chain management. Shohei Kimura, Nissan Corporate Vice President for Vehicle Production Engineering, is appointed Alliance Executive Vice President, Manufacturing Engineering and Supply Chain Management.
- Purchasing: Renault and Nissan have enjoyed an integrated purchasing organization for more than a decade. But convergence of major engineering and manufacturing activities will drive greater purchasing synergies and more economies of scale.Christian Vandenhende, Managing Director of the Renault-Nissan Purchasing Organization, is appointed Alliance Executive Vice President, Alliance Purchasing.
- Human Resources: Renault and Nissan teams will implement common HR processes throughout the Alliance, including the creation of a unified “talent management” policy across the companies’ global operations. Marie-Francoise Damesin, Renault executive vice president for Human Resources, is appointed Alliance Executive Vice President, Alliance Human Resources. In addition, Greg Kelly, Nissan Senior Vice President of the CEO Office and Global Human Resources, is appointed Alliance Executive Vice President, Alliance Talent Management.
History of the Alliance
The Renault-Nissan Alliance was formed on the 27th of March in 1999. In fact, this has become the longest lasting and most productive collaboration in the auto history. With numerous already integrated several functions, including information technology, logistics, customs and trade, and purchasing.
Now the Alliance has expanded significantly since its founding and is one of the four largest automotive groups by sales volume. There are also now joint ventures from this Alliance including Daimler, Mitsubishi, AvtoVAZ, Ashok Leyland and Dongfeng.