Car makers aim to ‘double savings’

Renault and Nissan plan to step up cooperation and double annual savings from their carmaking alliance to 4 billion euros in 2016, sources said.

Carlos Ghosn, head of both carmakers, outlined the new goal at an internal presentation to Renault and Nissan managers, sources who attended the meeting said.

“Ghosn said we need to seek further synergies to get to double where we are today,” an alliance executive said.

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In parallel with their operational savings push, Renault and Nissan are reviewing the cross shareholdings underpinning their 13-year-old alliance. Discussions are at a preliminary stage.

Renault currently holds a 43.4 per cent stake in its larger Japanese affiliate, which in turn owns 15 per cent of Renault.

The companies would not comment on savings goals or the “shifting pendulum of speculation about the alliance’s corporate structure”, a Renault-Nissan spokeswoman said.

“We seek more and more synergies every year,” she add- ed.

To meet the new goal, the allied carmakers would centralise more activities under their joint holding company, Renault-Nissan BV, sources said.

The Dutch-registered venture, which already runs some purchasing and logistics operations for both companies, will extend into new markets such as Russia and broaden its remit in back-office functions such as information services, they added.

Renault shares rose as much as 9.8 per cent to 37.725 euros on the news.