Renault-Nissan Alliance Posts Record €2.9B Synergies in 2013 Ahead of Launch of First Common Module Family Vehicles

PARIS and YOKOHAMA -- July 2, 2014: Purchasing, powertrain and vehicle engineering areas remain the biggest contributors to synergies "Non-traditional" business functions, such as sales and marketing, increase contributions Moving forward, synergies are expected to accelerate with "convergence" in four key business functions The Renault-Nissan Alliance posted record synergies of 2.87 billion euros in 2013, up from 2.69 billion euros in the previous year. Purchasing, powertrain and vehicle engineering remained the biggest contributors as the Alliance geared up for the launch of its first Common Module Family (CMF) vehicles.

Purchasing, which is jointly managed by Renault-Nissan Purchasing Organization (RNPO), generated 1.036 billion euros in synergies. Vehicle engineering, which relates to common platforms and components, accounted for 714 million euros. The co-development and exchange of powertrains accounted for 525 million euros.

Synergies are derived from cost reductions, cost avoidance and revenue increases. Only new synergies - not cumulative synergies - are taken into account each year. Synergies help both Renault and Nissan meet performance objectives and, significantly, enable the carmakers to deliver higher value vehicles to customers around the world.

(To learn more about 2013 synergies, watch this video: Synergies

CMF and emerging markets drive synergies

Common Module Family (CMF) is the Alliance's unique system of modular architecture and an increasing source of synergies.

CMF enables Renault and Nissan to build a wide range of vehicles from a smaller pool of parts, while at the same time increasing customer choice and quality. Small vehicles are based on CMF-A, while mid-sized vehicles are CMF-B, and the largest vehicles are CMF-C/D.

In November 2013, Nissan began selling its first vehicle on CMF in the United States; the new Rogue sports utility vehicle is built on CMF-C/D. The following month, Nissan began selling the X-Trail crossover SUV in Japan, also based on CMF-C/D. In February, Nissan began selling the Qashqai crossover in Europe.

The first model based on CMF at Renault will be the replacement for the Espace, which will debut in 2015 on CMF-C/D.

In 2013, the Alliance also began development work on CMF-A, the most affordable category of cars. Production of CMF-A vehicles will begin in 2015 at the Renault-Nissan Alliance plant in Chennai, India.