Renault-Nissan alliance is 15 years old, makes more consolidation

Renault-Nissan has been together for fifteen years and CEO Carlos Ghosn is ready to further consolidate operations with a timetable to 2016.

The cross-cultural partnership of the Nissan-Renault alliance has become one of the global automaker's strongest assets, paving the way for the very diverse and multi-national leadership personnel that make up today's Nissan. As the alliance continues, CEO Carlos Ghosn and key leadership have announced continued convergence between the two companies.

Engineering, manufacturing and supply chain management are continuing to merge as purchasing and human resources begin consolidating on April 1. These convergences are expected to increase synergies to €4.3 billion by 2016.

It's hard to imagine that just fifteen years ago, Nissan was nearing bankruptcy and sought the alliance with Europe's strongest home brand, Renault, who invested about $5.4 billion (US) into NIssan, taking a 37 percent stake. In the fifteen years since, the two companies have nearly doubled their sales (from 4.8 million units in 1999 to 8.3 million in 2013) and are now considered one of the top automakers globally. One in ten cars sold globally is a Renault-Nissan car. Renault has a 43.4 percent stake in Nissan as of now and Nissan holds about 15 percent of Renault.

The new mergers will further consolidate their respective aspects of the alliance and pull the two companies closer together to improve supply chain and make acquisitions and purchasing more cost-effective. The four key functions of these departments will be jointly managed by Renault and Nissan with newly-appointed Alliance Executive Vice President holding sway over each of the four functions and reporting directly to CEO Ghosn.