competitiveness in the automotive sector is brutal. Proof of this is that today few brands operate individually. Between those that fight against the current are the japanese Mazda, Honda, and Suzuki, since the rest have a position in the market, a quasi-testimonial and every day that passes its existence is more complex. Therefore, cooperation is needed and more if you want to win the critical mass needed to sell the cars that are needed to be truly profitable.
Be part of a great group automobile has advantages and disadvantages (like everything in life) but the Renault-Nissan Alliance is the best example of that you can do very large things without getting in trouble. At industry level, every brand is going on their own, with their own strategic plans, ranges of models and designs, but at the level of costs and production structure go hand in hand. With this approach each brand, Renault and Nissan (in addition to the other forming the alliance), moves in the market without limitations doing what they think fit to grow as you have marked on your goals.
however, to have this wide freedom of moves before you have to do your homework. These are not other that cost savings to have money cool you can use on new models. As stated by the same Carlos Ghosn CEO of the Renault-Nissan Alliance
“the growing co-operation across the Alliance is very beneficial for their members, and this is reflected in the achievement of economies of scale, technological advances and innovations that are being shared by Renault and Nissan” […] “we are on the right path to achieve synergies for an amount of 5,500 million euros in the year 2018, even before you include the operations of Mitsubishi Motors, our new partner in the Alianz”
These synergies of which he speaks He come from the hand of the various activities of the Alliance. The first is the research and development in new technologies, the second comes from the hand of the use of modular platforms common and the third comes from the joint purchases of components made by them to their suppliers. In addition, this list would have to include the production models in the different plants of the Alliance.
The production cross-model enables the group to franco japanese save a lot of money. Proof of this is that Renault is in the process of the production of the new Nissan Micra in France, and that Nissan will take care of the assembly of the new pick up of Renault, the Alaskan. In this equation, everyone wins and Mitsubishi, their new family member will be the next benefited, as this was one of the points that I was losing competitiveness in the sector.
Source: Renault-Nissan Alliance
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