Renault-Nissan Alliance posts record €2.9bn synergies due to modular vehicle architecture

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It added that powertrain and vehicle engineering remained the biggest contributors as the Alliance geared up for the launch of its first Common Module Family (CMF) vehicles (see video here).   

Purchasing, which is jointly managed by Renault-Nissan Purchasing Organisation (RNPO), generated €1.036bn in synergies. Vehicle engineering, which relates to common platforms and components, accounted for €714m. The co-development and exchange of powertrains accounted for €525m.

The CMF system is the two carmaker’s modular vehicle architecture. Small vehicles are based on CMF-A, while mid-sized vehicles are CMF-B, and the largest vehicles are CMF-C/D. 

In November 2013, Nissan began selling its first vehicle on CMF in the United States; the new Rogue sports utility vehicle is built on CMF-C/D. The following month, Nissan began selling the X-Trail crossover SUV in Japan, also based on CMF-C/D. In February, Nissan began selling the Qashqai crossover in Europe. 

The first model based on CMF at Renault will be the replacement for the Espace, which will debut in 2015 on CMF-C/D. 

In 2013, the Alliance also began development work on CMF-A, the most affordable category of cars. Production of CMF-A vehicles will begin in 2015 at the Renault-Nissan Alliance plant in Chennai, India. 

‘Development of CMF vehicles is helping to drive synergies in all our major business areas – from purchasing to vehicle engineering and powertrains,’ said Christian Mardrus, Alliance executive vice president for Renault-Nissan BV and the Alliance CEO Office. ‘CMF will continue to be a major driver of our synergies in the future with 70% of our vehicles expected to fall within the CMF scope by 2020.’

The Alliance also generated synergies in emerging markets, such as India and Russia, where Renault and Nissan manufacture vehicles together at the same plants. Last year, Renault began sales of the Duster sports utility vehicle in the UK and South Africa. The right-hand drive vehicles are produced at Renault-Nissan Automotive India Private Limited in Oragadam, India, near Chennai. The plant, which has a capacity of 400,000 vehicles per year, splits production between Renault and Nissan vehicles. 

Also last year Nissan began sales of the Almera sedan, which is built in Togliatti, a manufacturing complex shared with partners Renault and AVTOVAZ, Russia’s largest automaker.

‘Thanks to our partnership, we are able to offer customers an extensive range of vehicles around the world – from Dacia to Infiniti,’ said Mardrus. 

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Natalie Middleton

Natalie has worked as a fleet journalist for nearly 20 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day. Natalie edits all the Fleet World websites and newsletters, and loves to hear about any latest industry news - or gossip.

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