PSA Group and SAIPA, have signed a joint-venture agreement to produce and sell Citroën vehicles in Iran.

PSA Group and SAIPA, Citroën's historic partner in Iran since 1966, have signed today a joint-venture agreement to produce and sell Citroën vehicles in Iran.

This 50/50 joint-venture lays the foundations for a strategic partnership between the two companies. It will cover the entire value chain, from the design stage right through to vehicle marketing, including purchasing. 

Manufacturing will take place at the Kashan plant in Iran, which will be 50%‑owned by PSA Group. This industrial site is the most modern of Iran with a flexible industrial process at the highest level of environmental standards (water-soluble paints for example).

The joint-venture will invest more than €300 million in manufacturing and R&D capacity over the next five years. The agreement will be backed up by technology transfers and a significant level of local content.

Consistent with the core model strategy deployed in the Push to Pass plan, the production in Kashan of three vehicles adapted to the heart of Iranian market will start in 2018. From early 2017, imported vehicles will be staging Citroën’s comeback in the country.

Citroën models will be sold throughout the country via a network dedicated exclusively to the brand. No less than 150 Citroën outlets will open in the next 5 years.

Commenting on the new agreement, Carlos Tavares, Chairman of the PSA Group Managing Board, said: "With more than 50 years of presence in Iran, PSA Group through this new strategic partnership is clearly committed to the deployment of a rich product plan that meets the expectations of Iranian clients."

JLR #2 - The SVO Business expands to increase staffing by an extra 250 people this year.

• Jaguar Land Rover is creating 250 jobs across its Special Operations division during 2016; an increase of nearly 25 per cent
• Special Operations is responsible for halo car products (Special Vehicle Operations), Vehicle Personalisation, classic car programmes by Jaguar Land Rover Classic and an exciting range of Branded Goods 
• Recruitment plan aligned to opening of new SVO Technical Centre and acquisition of new Jaguar Land Rover Classic headquarter facilities in UK

Jaguar Land Rover Special Operations today announces recruitment plans to support its ambitious growth strategy, with the creation of 250 new jobs this year.

Just two years after its creation in 2014, plans to increase the number of employees across Special Operations’ business areas is aligned to the £30m investment made in new headquarter facilities in the British Midlands for Special Vehicle Operations (£20m) and Jaguar Land Rover Classic (£7.5m).

John Edwards, Jaguar Land Rover Special Operations Managing Director, said: “Today we employ just over 1,000 designers, engineers and technicians across four divisions in Special Operations.

“The team is energetic, enthusiastic and entrepreneurial. They are the principal reason that we have made a strong start in business since 2014.

“Now we have new facilities, technologies, products and services in place to exceed the demands of our most discerning customers all over the world. I look forward to strengthening our team and delivering on this fantastic opportunity.”

Since June 2014, Special Vehicle Operations has successfully launched the Jaguar F-TYPE Project 7 and incredible new, 200mph-capble F-TYPE SVR, as well as the formidable Range Rover Sport SVR and luxurious Range Rover SVAutobiography. Sales of SVO products across both the Jaguar and Land Rover brands totalled more than 3,600 in the 2015/16 financial year.

John Edwards said: “Our business plans are driven by the desire for ‘halo’ vehicles and other exclusive products from customers in all corners of the globe. The vision for Special Vehicle Operations is to launch one new SVO car every year, on average, for at least the next four years.”

These new products will be crafted at the new £20m Special Vehicle Operations Technical Centre at Oxford Road in Coventry. The new centre will contain four new areas, with a Commissioning Suite and Viewing Suite where experts will guide customers through the design and creation of their new vehicles. These vehicles become reality in the newly-established Manufacturing Facility, Paint Facility and Technical Suite. These new facilities, and the people working there, will be responsible for building the cars that represent the very pinnacle of the Jaguar and Land Rover brands, offering the ultimate in luxury, performance and capability.

Jaguar Land Rover Classic, which is responsible for the successful launches of continuation editions of the Jaguar Lightweight E-type and forthcoming XKSS, as well as the recent introduction of the Land Rover ‘Reborn’ restoration programme, will establish a new home in the British Midlands later this year, following acquisition of a new site near to the Special Vehicle Operations Technical Centre. The initial investment in this new facility totals £7.5m and the new site will house car sales, restorations, servicing and parts operations.

JLR #1 - SVO gets it's own manufacturing base to build, design & commission storming versions of existing cars.

• Brand new Technical Centre to undertake manufacturing, personalisation and commissioning programmes for Jaguar Land Rover Special Vehicle Operations division
• New Technical Centre located near Coventry represents a £20m investment by Jaguar Land Rover
• Technical Centre comprises four zones: Manufacturing Facility, Paint Facility, Technical Suite and new VIP Commissioning and Viewing Suites 

Jaguar Land Rover Special Vehicle Operations (SVO) today officially opens its new Technical Centre in the heart of the British Midlands. The innovative new £20m facility near Coventry will be the headquarters of SVO and will house manufacturing, paint, technical and customer commissioning and presentation zones inside the 20,000m2 facility.

The new Technical Centre is significant representation of the growth of Jaguar Land Rover Special Operations – the specialist division of Jaguar Land Rover created in June 2014 to build a business responsible for halo car products (SVO), Vehicle Personalisation, classic car programmes by Jaguar Land Rover Classic and an exciting range of Branded Goods. 

John Edwards, Managing Director of Jaguar Land Rover Special Operations, said: “The new Special Vehicle Operations Technical Centre is a major step forward in meeting the desires of our most discerning customers. There are more than 200 skilled employees here that are committed to outstanding quality and craftsmanship in everything they do.

“The SVO Technical Centre is very modern facility, inspired by a Formula 1 engineering centre. It covers 20,000 square metres including a manufacturing area, one of the world’s most eco-friendly and advanced paint shops, custom-built commissioning suite, technical suite, presentation suite and offices.

“This new Technical Centre enables us to build on the successful launches of the Range Rover Sport SVR, Range Rover SVAutobiography and Jaguar F-TYPE SVR , and provide an excellent foundation for the growth of the SVO business with the introduction of exciting new Vehicle Personalisation programmes.”

The Vision: Vehicle Personalisation

In future, customers will be able to visit the Technical Centre’s Bespoke Commissioning Suite by invitation, where they will explore the infinite range of possibilities for creating and customising their own Jaguar or Land Rover vehicle. A member of the Jaguar or Land Rover Design team will be on hand to assist the customer in the commissioning process.

Greg Clark, Director of Vehicle Personalisation said: “Our brand new facility delivers industry leading quality, precision and choice. We will encourage customers to participate in the design of their own vehicles, to give a real sense of emotional connection to something that they have created; something unique.

“Our aim is to progressively grow our portfolio to cater to, and exceed, the desires of our most discerning customers.”

The exclusive experience will continue through to the food served to customers visiting the Technical Centre. Michelin-starred chef Graham Edwards, who learned his trade in London’s West End and has previously worked with Raymond Blanc, is on hand to create a selection of dishes designed to suit the client or and utilising the very best of the Midlands’ regional ingredients.

The SVO story will continue in the Technical Centre once the customer has left, as their car is painted and hand-finished in the other three areas of the building.

The quality and attention to detail throughout the Technical Centre has been inspired by the exacting standards of the top level of motorsport. The workshop features a series of highly advanced workstations and has been created to enable the final assembly of SVO vehicles, by hand, to the highest possible quality.

Renault/Nissan to strengthen synergies in Engineering, Manufacturing & Supply Chain Management, Purchasing, & HR

• Renault and Nissan to strengthen synergies in Engineering, Manufacturing Engineering & Supply Chain Management, Purchasing, and Human Resources
• Additional functions expected to converge after internal approval process
• Convergence should generate €5.5 billion in synergies in 2018

The Renault-Nissan Alliance is strengthening synergies in four core divisions and launching new convergence projects to boost efficiency and revenue. Convergence includes integrating divisions, creating common processes, exchanging talent and other significant sharing of resources. 

Convergence helped Renault and Nissan generate more than €4 billion in annualized synergies in calendar-year 2015.

During a convention of top Alliance executives globally, Renault-Nissan announced today that it is strengthening synergies in Engineering, Manufacturing Engineering and Supply Chain Management, Purchasing, and Human Resources. These functions converged in 2014 and already have Alliance executives managing the units.

The Alliance also plans to partly converge Quality and Costing to support the original four converged functions. The Alliance will study other opportunities to increase synergies in Sales & Marketing, Connectivity and Connected Services, Product Planning, Aftersales and other support functions.

Through the end of March, Renault and Nissan executives will present these convergence projects to appropriate employee representation and corporate decision-making bodies. If approved at the end of an internal review process, implementation will begin April 1. Leaders in these new functions and the scope of their converged activities will be announced at that time.

Alliance as Pragmatic Business Tool

Renault and Nissan share an industrial footprint with numerous cross-manufacturing projects in France, South Korea, India and Russia. In addition, engineers at Renault and Nissan – which have a combined annual R&D and capital expenditure fund of €10 billion -- work together as one team to reduce duplication in the development of next-generation technologies.

The Alliance aims to generate €5.5 billion in synergies in 2018.

“The auto industry is rapidly evolving, requiring Renault and Nissan to leverage the Alliance as a pragmatic business tool,” said Renault-Nissan Alliance CEO and Chairman Carlos Ghosn. “The road ahead is one of more convergence, working more closely together.”

Renault-Nissan Alliance cost savings increase to 3.80 Billion Euro's, an increase on the previous year.

• Purchasing, engineering and manufacturing are biggest contributors to synergies
• Common Module Family (CMF) drives synergies in all major areas
• Convergence of key functions in 2014 accelerates synergy momentum
• Sales and marketing and other functions increase contributions

The Renault-Nissan Alliance posted record synergies of €3.80 billion in 2014, up from €2.87 billion the previous year. Purchasing, engineering and manufacturing were the biggest contributors. The launch of the Alliance’s first Common Module Family (CMF) vehicles, as well as the recent convergence of four key units, helped drive synergies all three areas.  

Synergies are generated from cost reductions, cost avoidance and revenue increases. Only new synergies (not cumulative) are taken into account each year. Accounting for synergies helps Renault and Nissan determine if they are meeting their performance objectives. More significantly, the net savings and revenue enhancements enable both automakers to offer higher-value vehicles to customers around the world.

“Our Common Module Family system continues to drive synergies in all major areas,from purchasing to vehicle engineering and powertrains,” said Carlos Ghosn, Chairman and CEO of the Renault-Nissan Alliance. “At the same time, the recent convergence of four key functions at Renault and Nissan -- Engineering, Manufacturing Engineering & Supply Chain Management, Purchasing and Human Resources -- is accelerating the momentum.”

Renault and Nissan converged the four functions on April 1, 2014. While Renault and Nissan remain separate companies, each function is led by a common Alliance executive vice president. Thanks to the convergence, the Alliance expects to overachieve on its goal of generating €4.3 billion in annualized synergies by 2016. That’s up from €1.5 billion in 2009.

Common Module Family (CMF)

Common Module Family is the Alliance’s unique system of modular vehicle architectures and an increasing source of synergies (to see our CMF infographic go toblog.alliance-renault-nissan.com/node/2634/)

CMF enables Renault and Nissan to build a wider range of vehicles from a smaller pool of parts, while at the same time increasing customer choice and quality. Small vehicles are based on CMF-A, while mid-sized vehicles utilize CMF-B, and the largest vehicles use CMF-C/D.

In February 2014, Nissan launched an all-new version of the popular Qashqai crossover in Europe. The Qashqai is built on CMF-C/D and is the third CMF model for Nissan. In 2013, Nissan launched the Rogue SUV in the United States and X-Trail crossover SUV in China. Earlier this year, Renault launched its first CMF vehicles: the New Espace and the Kadjar. Both vehicles are built on CMF-C/D as well.

In 2015, Renault will launch the Kwid in India. The Kwid is the first Alliance car built on the CMF-A architectureand will be produced at the Renault-Nissan plant in Chennai. Datsun will launch a vehicle on the same platform in 2016.

By 2020, the Alliance expects 70 percent of its vehicles to be built on CMF architectures.

Cross production

The cross production of vehicles is also a major driver of manufacturing synergies. Cross production is expected to accelerate across the Alliance following the rollout of the Alliance Production Way (APW) at all plants around the world by the end of 2015. The APW manufacturing system is the result of best practice sharing throughout the organization and allows plants to make better use of their capacity by enabling them to produce both Renault and Nissan vehicles.

In 2014, Nissan began production of the Rogue crossover in Renault’s plant in Busan, South Korean, to meet stronger-than-expected demand in the U.S.

The AVTOVAZ plant in Togliatti, Russia, is the Alliance’s biggest production base in the world with capacity of nearly one million vehicles per year. The plant produces vehicles under four brands – Lada, Renault, Nissan and Datsun. The Alliance owns a majority stake in the joint venture that controls AVTOVAZ, Russia’s largest automaker.

Contribution from other business areas, including sales and marketing

The Alliance is increasingly benefitting from synergies in other areas, such as sales and marketing.

For example, thanks to the Alliance, Renault and Nissan are able to offer customers an extensive range of vehicles around the world. In 2014, the Alliance signed global contracts with several fleet customers, including multinational food-products corporation Danone.