Renault and Nissan create alliance management team

Article by Andrew Christian, on March 19, 2014

Renault and Nissan have announced plans to integrate key operations and pursue greater economies of scale. Renault said in a statement that the alliance will push for greater integration in four key areas starting April 1, 2014: engineering, manufacturing/supply chain management, purchasing, and human resources.

The integration will entail Nissan executives taking core engineering and manufacturing leadership roles and Renault executives taking purchasing and human resources positions. In January, the alliance partners had said they will accelerate integration between them. Since then, management teams and their respective finalized convergence plans following consultations with worker representatives, Renault said.

"Convergence within these four key business functions will result in an immediate increase in efficiency and leverage our size to achieve competitive economies of scale," Renault-Nissan chief executive Carlos Ghosn said in the statement. "The synergies will then enable us to deliver higher-value vehicles to customers and stay at the leading edge of innovation."

The alliance partners target EUR4.3 billion ($6 billion) in annualized synergies by 2016. As part of the convergence plan, Tsuyoshi Yamaguchi will become chief of alliance technology development with responsibility for r&d in engines and vehicles -- including future electric cars -- and for the alliance's Common Module Family platform.

Yamaguchi is currently head of platforms and parts for the alliance. Shohei Kimura, meanwhile, will become chief of manufacturing engineering and supply chain management, responsible for converged manufacturing functions, global industrial strategy.

Kimura is currently head of vehicle production engineering at Nissan. Christian Vandenhende, who is currently head of the Renault-Nissan Purchasing Organization, will become chief of purchasing for the alliance.

The current head of personnel at Renault, Marie-Francoise, will become chief of human resources for the alliance and will be in charge of creating a unified "talent management" policy across their global operations.

Nissan's head of global human resources, Greg Kelly, will become the chief of Alliance Talent Management. "Convergence of major engineering and manufacturing activities will drive greater purchasing synergies and more economies of scale," Renault said. [source: Reuters]

Topics: renault, nissan

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