RenaultNissan alliance pushes economies of scale to new level Fortune Features

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Nissan CHAdeMO Electric Cars

Renault-Nissan alliance pushes of scale to new level

March 5, 10:57 AM ET

The two auto brands aim for 70% development of vehicles under the module family method.

By Levin

FORTUNE — years ago, Renault SA a relatively unknown auto named Carlos Ghosn to a triumphal turnaround at Japan’s bankrupt Nissan Motor Renault’s feat is still at business schools worldwide.

in 2014 demands a new skillset. For automaker Renault and Nissan, it recruiting more automotive while devising an innovative of vehicle development — are tactics to share and absorb the cost of advanced technology and compliance.

Renault and Nissan, though remain separate companies and are inching closer. Each a big equity stake in the other and on a single chief executive, Increasingly, they seek new of cooperation.

The latest is their to develop 70% of their vehicles according to a so-called common family method, known as

We have to cooperate in the areas can lead to economies for both while making sure our models are distinct and separate in the of consumers, said Christian managing director of the Paris-based

Volkswagen AG and Toyota Motor (TM ) have devised their own of common engineering and design to cost for models sold in markets and sizes, and with levels of equipment. Volkswagen its method openly; Toyota has coy.

Under CMF, the categories of vehicles, by size, are according to common engineering of underbody, engine, cockpit, underbody, and electrical/electronic architecture. For The wand that controls and highbeams will be the same in all Nissan and Renault subcompacts, both companies to benefit large-scale purchases from suppliers.

Nissan’s Infiniti of luxury cars has been from this discipline, to the demands of customers for premium

Early this year, began building its Datsun Go model at a factory in Chennai, It is the first vehicle to be built to CMF-A, the new framework for all minicars and sold worldwide by Renault or

Nissan CHAdeMO Electric Cars

The Renault-Nissan Alliance has formed with Germany’s Daimler AG, Mitsubishi Motors, and AvtoVAZ of Daimler, which builds and the alliance are jointly developing a luxury car architecture that also be sold under Infiniti luxury brand.

and Nissan are cooperating on the development of a electric vehicle and a global car, according to Osamu Mitsubishi chairman and chief officer. Then the next would be to expand with he said, maybe a D-segment car from Renault that be sold in the U.S.

I believe that because of the in the world, we are becoming closer and every day, Masuko Limited resources mean we do everything. If you don’t have volume, costs can’t down.

Mitsubishi sells 1.3 vehicles worldwide annually, far of the 8 million or so a single automaker sell to spread costs enough vehicles and also sufficient profit.

In 1989, said, we used to talk the 4 million club, meaning the needed at that time to be without one or more substantial


Daimler tried to achieve scale in terms of sales with its 1999 merger Chrysler Corp. The spectacular of that transaction has led many in and consulting to point out the prevalence of mergers and destruction of capital.

By the method that Renault — a reciprocal equity with Nissan, while its independence — has succeeded The two companies — siblings, — sold more 8 million vehicles last Their combined market of $66 billion make them as as Honda Motor (HMC ).

Nissan CHAdeMO Electric Cars
Nissan CHAdeMO Electric Cars
Nissan CHAdeMO Electric Cars
Nissan CHAdeMO Electric Cars
Nissan CHAdeMO Electric Cars
Nissan CHAdeMO Electric Cars
Nissan CHAdeMO Electric Cars
Nissan CHAdeMO Electric Cars

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