The Renault-Nissan Alliance says it achieved record internal synergies of EUR 2.69bn in 2012, with particular gains in emerging markets.
In a statement, the company said that synergies last year were up by 54% on the previous year, with purchasing, powertrain and vehicle engineering activities being the biggest contributors. It also said that synergies are expected to keep growing with acceleration in non-engineering areas.
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The Alliance said that synergies come primarily from cost reductions and cost avoidance. Only new synergies – not cumulative synergies – are taken into account every year. Renault and Nissan collaboration increased worldwide, particularly in emerging markets where both companies are expanding their industrial footprints.
“Synergies and greater economies of scale allow Renault and Nissan to compete in an elite tier of the world’s top automakers globally,” said Christian Mardrus, Renault-Nissan Alliance Managing Director for Logistics and the Office of the CEO.
Analysts have long noted the benefits to Renault and Nissan derived from shared engineering costs and higher scale economies, as well as some consolidation of activities globally. Some have suggested that the two companies could eventually merge, but that suggestion has been dismissed by both who have maintained that the alliance provides big benefits without the pitfalls of lost independence.
