Renault-Nissan on road to save big bucks

Renault-Nissan alliance has initiated convergence of its key roles, and with this they hope to save a whopping amount of Rs. 36,545 crore by 2016. For this matter, it will also appoint an executive vice president for each of the four primary initiatives that will kickstart from April 1st this year. The particular convergence of Renault-Nissan's key business functions is considerably the new and innovative step since the evolution of this alliance. Since then the companies have integrated several functions, including technology, customs and trade, logistics and purchasing.

Commenting on this, Carlos Ghosn, CEO and chairman Renault-Nissan 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. The synergies will then enable us to deliver higher-value vehicles to customers and stay at the leading edge of innovation.”

Under several departments, the impact of this new initiative will be visible in order to achieve better overall results. The major change would occur to engineering, manufacturing engineering and supply chain management, purchasing and human resource departments. Also there will be a new committee formed to look after the implementation of convergence and to closely observe the development of new organisational structure.