The Renault-Nissan Alliance celebrated its 15th anniversary Thursday, only days before the global car group launches its next significant wave of integration. Renault and Nissan came together in1999, when Renault invested 643 billion yen (approximately 5 billion euros or $5.4 billion at the time) for a 36.8 percent stake in Nissan, which at the time was close to bankruptcy. Since then, the companies have reached sales of 8.3 million units, up from 4.8 million units in 1999, and moved into the top tier of global automakers. Today, Renault has a 43.4 percent stake in Nissan, while Nissan has a 15 percent stake in Renault. “Together, Renault and Nissan have significantly expanded their global footprint and generated economies of scale vastly larger than either company could accomplish on its own,” said Renault-Nissan Alliance Chairman and CEO Carlos Ghosn. “Renault and Nissan have charted a unique course for 15 years, maximizing synergies while nurturing each company's distinct brands and corporate culture.” The Renault-Nissan Alliance is now the auto sector's longest-lasting and most productive cross-cultural collaboration – a model business case in an industry notorious for corporate breakups. In 2013, the Alliance, including AVTOVAZ – Russia's largest automaker – sold a record 8.3 million cars. The Renault-Nissan Alliance accounts for one in 10 cars sold worldwide, the fourth largest car group globally. The Alliance has eight brands: Renault, Nissan, Renault Samsung, Infiniti, Venucia, Dacia, Datsun and Lada. The Alliance generated approximately €2.8 billion in synergies in 2013, another new record. Synergies are generated from cost reductions, cost avoidance and revenue increases. Only new or incremental synergies – not cumulative synergies — are taken into account every year. By 2016, that amount is expected to rise to at least €4.3 billion following the convergence of engineering, manufacturing & supply chain management, purchasing and human resources on April 111. Convergence marks the next step in the 15-year evolution of the Alliance. Under the convergence plan, the four key functions will be jointly managed by Renault and Nissan, with a newly appointed Alliance Executive Vice President leading each function, and a new management committee to oversee implementation. — SG
