Daimler and Renault-Nissan: Drive For A Wider Manufacturing Alliance
Daimler and Renault-Nissan: Drive For A Wider Manufacturing Alliance
The top auto giants, Daimler and Renault-Nissan have extended the manufacturing alliance between them to now include engines and gearboxes. The two companes in a joint press release indicated that the agreement also includes the stipulation that Renault-Nissan will supply Daimler with a 1.5 litre 4 cylinder diesel engine for use in Mercedes Benz C class.
Mercedes will supply its 2 litre 4 cylinder gasoline engine for optimal usage by the premium brand of Nissan, Infiniti. Nissan now has the license to manufacture the 9 speed automatic transmission for use by Daimler in Infinity vehicles. "This relationship is in its fifth year. Progress has gone well beyond our initial expectations," Renault-Nissan Chief Executive Carlos Ghosn was quoted as saying during a joint press conference.
The manufacturing alliance is now being extended to a point where there are no limits placed on the level of cooperation that could evolve, according to the 2 carmakers. "We maintain the attitude that everything is on the table. There are no sacred cows," Renault honcho Ghosn was quoted as having said said at a news conference with Daimler CEO Dieter Zetsche at the Paris auto show, as per a Reuters report.
The leading executives of these 2 automakers also said the alliance had grown in terms of projects from 3 to 12. Goshn also said these projects were yielding considerable cost savings of more than 2 billion Euro or $2.5 billion. Mercedes as well as Renault-Nissan have shared all sorts of projects and engines, plans as well as vehicle bases for small cars since an alliance was forged in 2010. This has been sttrengthned further via token reciprocal shareholdings, according to Reuters.
Daimler has not fared well with Chrysler or BMW, but Renault-Nissan is another story altogether. This pact is a strong alliance which was extended for years now. The two companies have also come to agreement for a new cooperation deal which is for transporter vans.
Nissan is set to supply Daimler’s Japanese commercial vehicles unit with a transporter van. While the unit is under the Mitsubishi Fuso Truck and Bus Corporation, the transporter can bequeathed the moniker of Fuso brand will now be sold in important export markets.
Nissan's van will also be marketed as a van under the Fuso Canter collection in Middle East markets soon. Sharing costs has worked out to the advantage of both the carmakers. "Based on projects underway and planned we expect annual revenue between the companies to more than double in the next six years," Renault-Nissan chief Carlos Ghosn also told the media. With the massive amount of gains made in cost cutting, this figure could be possible quite easily.
