Renault, Nissan To Share Components
Renault SA and Nissan Motor Co. said they agreed to jointly buying a greater proportion of components. In a statement, the French and Japanese manufacturers said joint purchasing would be increased to an annual value of $21 billion from approximately $15 billion currently, with most of the new parts being used in powertrains.
Common purchasing, which brings unit cost savings and gives the two carmakers more power over pricing, is a crucial element of their broader alliance, which also includes manufacturing and sales.
Renault took a stake in Nissan in 1999.
Further benefits from the alliance are expected in 2004 when Renault starts building a new version of its high volume Clio compact on the same assembly platform as a Nissan model, the March, or Micra in Europe. By 2005, the two companies hope to be making half of their cars on joint platforms, cutting operating overheads and allowing them to jointly purchase more parts.
If all goes to plan, 2010 would see the lion’s share of their output based on 10 joint platforms, with eight families of engines and seven common powertrains, Renault said.
Renault earlier this year upped its initial Nissan stake to 44.4 percent from 36.8 percent, while Nissan took a 15 percent stake in Renault.
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