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Supplying the Renault-Nissan Alliance

  • March 2014
  • 128 pages
  • Supplier Business
Report ID: 2259549


Table of Contents

Understanding the purchasing and production operations of global OEMs is increasingly important for suppliers, as they face increasing platform consolidation and intensifying competition for new business
IHS SupplierBusiness' new Supplying the Renault-Nissan Alliance report provides a unique insight into the environment in which the OEMs make their critical sourcing decisions. The report analyses the ways in which Renault-Nissan is moving forward in terms of models and technology and looks in-depth at what issues are affecting the OEM in terms of supply and manufacturing.

The report is based on interviews with key purchasing executives, featuring IHS Automotive’s industry standard forecasting and analysis on the following topics:
Product and Platform Strategy
Production Strategy
Purchasing Strategy
Supplier Selection
Global Sourcing
Pricing Policy
Quality Management
Technology Development
Interviews with Key Executives
OEM-Supplier Relations Survey Results
SWOT Analysis
Global Footprint
Forward Model Programme

About this report

While the primary product of the Renault-Nissan Alliance is new vehicle production, the primary purpose of the Alliance is to achieve cost savings across those business divisions integral to delivering new vehicles. This search and implementation of cross-OEM synergies has been gathering pace since the Alliance was formed in 1999, via such methods as vehicle platform sharing and whole vehicle sharing, which takes the form of cross-brand rebadging.

More recently, the Alliance partners have put in place a single entity for the procurement of parts across the two OEMs. Since 2009, the Renault Nissan Purchasing Organization (RNPO), based in Paris, France, has controlled 100% of the purchasing across both companies. This has both served to streamline the purchasing process, while also allowing the examination of purchasing proposals to understand where savings can be achieved, in achieving the best cost-per-part in the bidding process or through bulk orders for parts used across production at both OEMs.

The success of the RNPO in achieving cost reductions as prompted the Alliance to start the process of developing the same cross-company divisions covering such key areas as R&D, manufacturing and human resources. Following on from the model of the RNPO, it is believed that these teams will be able to achieve the same success and further reduce overall operating costs.
Clearly, reduced cost is a driving motivator at Renault-Nissan, but this is also balanced with the need to maintain quality, both actual and perceived. With the introduction of the low-cost Dacia brand (marketed as Renault outside Europe), Renault was ruthlessly efficient in controlling costs, but this could not to the detriment of vehicle reliability. With the introduction of the second-generation Qashqai, it was understood that while controlling cost was of critical importance, it could not be at the expense of improved cabin appearance and functionality.
With this information in mind, IHS SupplierBusiness has compiled the Supplying the Renault-Nissan Alliance 2014 report. This document delivers the latest information and analysis on how the Alliance is moving forward to take advantage of yet more cost-saving synergies, while looking at the existing and future opportunities that these moves will create across the supply chain. From future versions of existing models, an expanding production footprint, and through to the relaunch of Datsun as a low-cost brand in Indonesia, Russia, India and South Africa, Supplying the Renault-Nissan Alliance 2014 offers the most comprehensive analysis of the plans now being implemented across the Alliance partners and what these will mean for the global supplier community.

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