* To achieve a minimum €4.3
billion annual synergy goal, the Alliance is implementing convergence plans
in four key areas: Engineering, Manufacturing & Supply Chain Management,
Purchasing, and Human Resources. *
Converged business functions become official 1 April and are expected to have
an immediate positive effect on operational performance. * Newly appointed Alliance Executive Vice
Presidents will take charge of increasing integration in each function.
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 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.”
Four Converged Alliance Functions with New Leaders
* Engineering: Renault and Nissan will combine Common Module
Family engineering, advanced research, powertrain development (including
electric vehicles), systems engineering and testing facilities and services. Tsuyoshi Yamaguchi, Alliance Director
of Platforms and Parts, is appointed Alliance Executive Vice President,
Alliance Technology Development, for the new converged Alliance function.
* 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. Shohei
Kimura, Nissan Corporate Vice President for Vehicle Production Engineering,
is appointed Alliance Executive Vice President, Manufacturing Engineering 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. Christian
Vandenhende, Managing Director of the Renault-Nissan Purchasing
Organization, is appointed Alliance Executive Vice President, Alliance
Purchasing.
* Human Resources: Renault and Nissan teams will implement
common HR processes throughout the Alliance, including the creation of a
unified “talent management” policy across the companies’ global operations.
Marie-Francoise Damesin,
Renault executive vice president for Human Resources, is appointed Alliance
Executive Vice President, Alliance Human Resources. In addition, Greg Kelly,
Nissan Senior Vice President of the CEO Office and Global Human Resources, is
appointed Alliance Executive Vice President, Alliance Talent Management.
To assist with the deployment and ongoing development
of the new organizational structure, a new Management Committee Alliance will
be established, headed by Carlos Ghosn. In addition, Christian Mardrus, Senior Vice President and Managing Director for
the Alliance CEO Office and Global Logistics, will become Alliance Executive
Vice President for Renault-Nissan BV and the Alliance CEO Office.
Together, Stronger
for 15 Years
Convergence in four key business functions is the latest
step in the 15-year evolution of the Renault-Nissan Alliance, which was formed
on 27 March 1999.
Since then, the Alliance has become the longest lasting and
most productive cross-cultural collaboration in the auto industry. The
companies have already integrated several functions, including information
technology, logistics, customs and trade, and purchasing.
The Alliance has expanded significantly since its founding
and now ranks among the world’s four largest automotive groups by sales volume.
The Alliance has partnerships and joint ventures with Daimler, Mitsubishi,
AvtoVAZ, Ashok Leyland and Dongfeng.
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