Nissan Motor and controlling shareholder Renault SA plan to increase joint purchasing by 53% next year, to add to $US1.9 billion in savings they’ve made the past three years, the Detroit News reported.
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The companies’ Renault-Nissan Purchasing Organisation will together spend $33 billion on parts and services next year, up from $21.5 billion in 2002, and the increase covers machinery, logistics and vehicle parts, the Detroit News said, citing a company statement.
The paper noted that Nissan, Renault, and other companies like General Motors are increasingly buying parts they can use in common with alliance partners to save costs – Nissan is forecasting a fourth straight year of record sales and operating profit helped by reducing the cost of parts.
“The benefits of Nissan and Renault’s alliance are significant and joint purchasing is one of the major parts of the partnership as we jointly develop” products, Nissan executive vice president Patrick Pelata said in an interview last month, according to the Detroit News.
The paper noted that General Motors and its affiliates including [Subaru-maker] Fuji Heavy Industries, Suzuki Motor and Isuzu Motors are also jointly purchasing automotive parts, goods and services to cut costs.
The Detroit News said Nissan, 44.4% owned by Renault, is aiming to cut purchasing costs 15% in the three years to March 2005 and added that increased profitability at Nissan boosts Renault’s earnings while the French car maker also gains from dividend payments.
