(March 17, 2014) AMSTERDAM — The Renault-Nissan Alliance today announced it will begin implementing convergence initiatives in four key operational areas starting 1 April, with the goal of achieving at least €4.3 billion ($5.9 billion) in annualized synergies by 2016.

Management teams and the boards of Renault and Nissan finalized the convergence plans following consultations with employee representatives. The Alliance initially launched convergence study projects in late January in four key areas: Engineering, Manufacturing & Supply Chain Management, Purchasing, and Human Resources.

Under the plan, these functions will be jointly managed by Renault and Nissan, with a newly appointed Alliance executive vice president leading each function, and a new management committee to oversee implementation.

"Convergence within these four key business functions will result in an immediate increase in efficiency and leverage our size to achieve competitive economies of scale," said Renault-Nissan Chairman and CEO Carlos Ghosn. "The synergies will then enable us to deliver higher-value vehicles to customers and stay at the leading edge of innovation."

Converged  alliance  functions:

    • Engineering: Renault and Nissan will combine Common Module Family engineering, advanced research, powertrain development (including electric vehicles), systems engineering and testing facilities and services.

    • 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.

    • 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.