Renault and Nissan to converge four major Alliance functions 1 April; including EV powertrain development
17 March 2014
The Renault-Nissan Alliance will begin implementing convergence initiatives in four key operational areas—Engineering, Manufacturing & Supply Chain Management, Purchasing, and Human Resources—starting 1 April, with the goal of achieving at least €4.3 billion (US$6 billion) in annualized synergies by 2016.
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.
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.
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.
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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