Ghosn says Renault-Nissan can compete without new partners
By Joseph White
NEW YORK - (Reuters) - French automaker Renault SA and its Japanese partner Nissan Motor Co continue to increase savings through synergies and can meet longer-term goals without expanding its current alliances, Chief Executive Carlos Ghosn told Reuters on Wednesday.
The two saved "much more" than 3 billion euros ($3.31 billion) in 2014 from sharing costs for new vehicles and technology development, compared with 2.8 billion euros in the previous year, he said. The companies are scheduled to release final figures for the synergies, or cost savings, from their joint programs in July.
Nissan and Renault can continue to cut the costs of developing new cars and trucks, including electric vehicles, and be competitive without taking on another partner, he said. The alliance's goal is to save 4.3 billion euros by 2016.
The Renault-Nissan alliance discloses its tally of cost savings as an indicator of the advantages the two automakers gain from collaborating on the development of new vehicles and technologies such as autonomous driving systems.
The alliance, formed in 1999 when Renault rescued Nissan from collapse, resulted in a cross shareholding arrangement in which Renault owns 43.4 percent of Nissan, while the Japanese company has a 15 percent stake in the French automaker. Ghosn, 61, is CEO of both.
Nissan is now bigger than Renault, and sells about two-thirds of the 8 million vehicles sold annually by the two.
The alliance has since grown to include German luxury car maker Daimler AG and Japan's Mitsubishi Motors Corp. Daimler and Renault-Nissan now have 13 joint projects under way, Ghosn said.
Sergio Marchionne, head of Fiat Chrysler Automobiles NV, stirred up the auto industry recently by campaigning for more consolidation to help sustain the heavy investments needed to meet demands for cleaner, safer vehicles. Continued...