The Alliance’s Structure
The Structure of the Renault-Nissan
Renault has a 43.4% stake in Nissan, and Nissan a 15% stake in Renault. This cross-shareholding arrangement ensures that the two partners have the same interests and encourages them to adopt win-win strategies beneficial to both.
Renault-Nissan BV, created on March 28, 2002, is responsible for the strategic management of the Alliance. It is a Dutch company based in the Netherlands and equally owned by Renault SA and Nissan Motor Co., Ltd.
Renault-Nissan BV (RNBV) is overseen by the Alliance Board, which is made up of members of the executive committees of each company and the Alliance as well as the Chairman and CEO of Renault-Nissan, Carlos Ghosn.
How Renault-Nissan operates
Our objective is to develop synergies worth at least €4.3 billion by 2016. To achieve this goal, a convergence plan was undertaken in April 2014 in four key areas for the Alliance: engineering, manufacturing and logistics, purchasing, and human resources. These four functions are managed jointly for Renault and Nissan, with each under the responsibility of an Alliance Executive VP.
The role of these Executive VPs is to strengthen the integration process in each of the converged functions.
Under the leadership of Arnaud Deboeuf, Alliance Executive Vice President for Renault-Nissan BV and the Alliance CEO Office, a team of Alliance Global VPs and Directors assigned to specific areas is aiming to increase and accelerate synergies.
The Global VP Directors of a global function in the Alliance manage and steer the function. They are in charge of both partners’ operations.
The Global Directors coordinate collaborative work between the two companies and see that their operations will help to strengthen synergies.
The Steering Committees choose the priority issues and give the working groups support in implementing the Alliance’s projects.
These bodies work with the network of joint teams set up by the two companies (Cross Company Teams and Functional Task Teams) to identify opportunities for synergies
Our synergies in the Alliance
The CMF effect
Since 2012, the Alliance has benefited from the synergies unlocked by a new approach called the Common Module Family (CMF). The CMF yields economies of scale through the standardization of parts and modules invisible to customers, diversity in design and flexibility in manufacturing.
Our synergies can reduce costs, eliminate expenses, or increase revenues. The CMF approach will be progressively extended across the Renault and Nissan vehicle ranges between 2013 and 2020. It is expected to lower the initial outlay per model by an average of 30% to 40% and to yield average savings on component purchases of 20% to 30%. In 2013, the value of our synergies rose to €2.8 billion, from €2.69 billion in 2012. The sectors contributing the most to these savings were purchasing, powertrains, and vehicle engineering. An ever-larger share of these gains are coming from activities in Asia and emerging markets such as Russia, where vehicles and mechanical components are manufactured at facilities shared by the two partners.
Number one in the electric vehicle market
The Alliance is also the only carmaker to offer a large range of all-electric vehicles. In 2013, global sales of Alliance vehicles producing zero emissions in use jumped to 66,809 units, up 52% on 2012. The Alliance’s share of the zero-emission vehicle market reached 63%, including Twizy, Renault’s little two-seat city vehicle.
Strategic partnerships: Daimler, AVTOVAZ and Mitsubishi
The Renault-Nissan Alliance has entered into numerous strategic partnerships since its creation.
On April 7, 2010, the Alliance concluded a long-term cooperation agreement with the German group Daimler AG. The cooperation is being pursued mainly in projects already under way and in the joint development of vehicle platforms and powertrain components.
In 2008, the Alliance concluded a strategic partnership agreement with AVTOVAZ, Russia’s leading carmaker. Russia is on track to become one of the Alliance’s main growth drivers in terms of sales and profitability. The objective is to capture a 40% market share in the country with AVTOVAZ in 2016.
In November 2013, the Renault-Nissan Alliance and Mitsubishi Motors laid the foundations for extensive international cooperation. The aim is to expand the geographic coverage for the three partners’ vehicles and to exploit the production capacities of their plants.