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.”

Infiniti to become a technical partner of the new Renault Sport Formula One team from 2016 season

• Technical partner of new Renault Sport Formula One team from 2016 season
• Contributing Infiniti's expertise in hybrid performance
• Leveraging opportunities within the Renault-Nissan Alliance

Infiniti's successful involvement in Formula One enters the next phase. Starting with the new 2016 season, Infiniti will be a technical partner of the new Renault Sport Formula One team. Leveraging its expertise in performance hybrids, Infiniti will contribute engineering resources to the Renault Energy F1 Power Unit's Energy Recovery System (ERS), which incorporates two motor generator units, the MGU-H and MGU-K, and a battery.

This new and enhanced involvement strengthens the Renault-Nissan Alliance and at the same time leverages the opportunities the Alliance provides by creating powerful industrial synergies for its members.

Infiniti's reputation for performance hybrid vehicles is built on the widely acclaimed 3.5-liter hybrid engine. The Q70 sedan – which is equipped with this engine – has been recognized by the Guinness Book of World Records as the fastest accelerating full-hybrid car. The same hybrid system is also offered on the Q50 sports sedan. Infiniti's strong expertise will be used by the Renault Sport Formula One team in Viry-Châtillon as a team of Infiniti hybrid specialists move from Infiniti's technical center in Atsugi, Japan to France to support development of the Renault Energy power unit. At the same time, Infiniti will use the experience from the F1 ERS system to further enhance its hybrid powertrains for road cars.

Infiniti began its Formula One involvement in 2011 as partner of the Red Bull Racing team and evolved into the title sponsor of the team as of the 2013 season. Building upon this experience, Infiniti now takes the logical next step forming a technical cooperation with the Renault Sports Formula One team based on a five-year plan.

"At Infiniti, motorsport is an important part of our business strategy," said Roland Krueger, president Infiniti Motor Company. "Forming a technical collaboration and enabling technology transfer road-to-track and track-to-road is the logical next step. The establishment of the Renault Sport Formula One Team by our Alliance partner Renault provides us with an ideal opportunity to enter this next phase of our long-term motorsport strategy."