One year ahead of schedule, the Renault-Nissan Alliance reportedly generated €4.3bn (US$4.8bn) in synergies in 2015, an increase of 13% from 2014.
Renault and Nissan generate these synergies by working together to reduce costs, avoid spending and increase revenue. Only new synergies – not cumulative – are taken into account each year. Synergies help Renault and Nissan meet their financial goals and deliver higher-value vehicles to customers. Purchasing, engineering and manufacturing were the main contributors.
“Convergence in four of our key business functions has resulted in creating value by reducing costs, avoiding expenses and increasing revenues. Thanks to the convergence, the Alliance expects to generate at least €5.5bn (US$6.1bn) in synergies in 2018,” said Carlos Ghosn, chairman and CEO of the Renault-Nissan Alliance.
July 6, 2016
