renault nissan

The Renault-Nissan Alliance is the longest-running and probably one of the most successful automotive partnerships around, having formed way back in 1999. In those 15 years, Nissan went from near bankruptcy to becoming one of the most profitable manufacturers, and the Alliance has become one of the leaders in electric vehicles.

But despite sharing the same chairman and CEO, Carlos Ghosn, Renault and Nissan have basically been run all this time as separate entities. This will change come April 1, however, as the Alliance has announced that the two will be converging in four key areas, with new Alliance executive vice presidents, many of them coming in from either Renault or Nissan, managing each of them.

Essentially, the two companies will work more closely on research and development, including electric vehicles and the new Common Module Family platform. The Alliance will also streamline manufacturing and supply chain processes, consolidate purchasing to improve economies of scale and employ common HR practices across both companies, with an aim to create at least €4.3 billion in synergies annually by 2016.

To keep the change in organisational structure in check, there will be a new management committee for the Alliance, which Carlos Ghosn will head. In addition, senior vice president for the Alliance CEO Office and global logistics Christian Mardrus will now become Alliance executive vice president of the Dutch holding company Renault-Nissan BV as well as the Alliance CEO Office.