Renault will adopt the cost-cutting measures of its alliance partner Nissan and standardise more components, industry sources told the Daily Yomiuri newspaper in Japan.

Under a new system being introduced next year, Nissan will assemble vehicles by combining four modules – such as engines and front underbody – in different ways for various models. The will make it easier to standardise more parts for each module, so cutting costs through mass production.

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Nissan expects to reduce purchasing costs by nearly 30% because 80% of its parts will be standardised under the new system, an increase from the current 40%.

With Renault emulating the system, the alliance hopes to further cut costs by expanding the number of parts subject to standardisation, the sources said.

Nissan and Renault have already cut costs through joint purchasing and chassis-sharing. Expanding the number of standardised components will bring additional benefits such as the ability to quickly develop new models for emerging markets.

The move by the alliance follows an industry trend. Volkswagen is to introduce a new system this year to standardise about 70% of its parts. Mazda has started using the same types of parts for several different models and Toyota plans to standardise half of its 4,000-5,000 major vehicle parts – such as engines and transmissions – over the next few years.

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