Renault, Nissan to merge production and R&D efforts, save $4B

Renault and Nissan are reportedly preparing to further combine their production and development efforts, potentially saving more than 400 billion yen (~$3.78 billion USD) per year, according to a Nikkei report. Both automakers are expected to reorganize their operations to minimize overlap, sharing parts and reworking factories to build models from different brands.

The companies have maintained a strategic partnership for more than a decade, operating independently and maintaining separate brands. The latest plan marks a significant shift toward tighter integration, putting the manufacturing departments of both companies under common management.

The alliance already boasts of 2.69 billion euros (~$3.6 billion USD) in savings during 2012, thanks to combined purchasing power and other strategies. The pair also took a controlling stake in Russia’s Avtozaz, adding another global facet to help them achieve their stated goal of 10 million annual sales by 2016.

The mixed-model manufacturing line is expected to be refined at a joint-venture facility in India, initially producing approximately 400,000 cars per year by 2015, before expanding to the companies’ other global facilities by 2020.

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