Renault, Nissan seek $2 billion in new synergies

Posted on Friday, May 29th, 2009 at 2:23 PM EDT.

The head of the alliance between Renault SA and Nissan Motor Co. said Friday he wants to squeeze out an extra 1.5 billion euros ($2.08 billion) in cost savings this year to get the French and Japanese automakers through the economic crisis, the Associated Press reported.

Company officials are targeting 363 million euros in savings from sharing manufacturing and logistics, the AP said. Renault’s plant in Brazil will produce two additional Nissan vehicles, and Nissan’s plant in South Africa will build two additional Renault vehicles, the story said.

Savings on the development of engines will generate 289 million euro of synergies, the AP said. The use of interchangeable components on Renault and Nissan vehicles and common platforms will bring 279 million euros of savings, and purchasing synergies will generate savings of 157 million euros, the story said. (Associated Press)

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