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How we work

In 2014, the Alliance took a major step in its evolution with the convergence of four core business functions: Engineering, Manufacturing and Supply Chain Management, Purchasing and Human Ressources. The Alliance generated €4,3 billion in synergies in 2015, one year earlier than anticipated, and 5 billion in 2016.

Purchasing

The Renault-Nissan-Mitsubishi Purchasing Organisation (RNPO) is responsible for the purchasing strategy and for selecting the suppliers of parts, services and equipment around the world. Since 2009, RNPO has represented 100% of Alliance commodity purchases. The collaboration across the platforms, powertrains and other parts rapidly increases, unleashing even more potential economies of scale for RNPO. In early 2015, Renault SA, Nissan Motor Co. Ltd., and AVTOVAZ merged their purchasing operations in Russia through a newly created entity: AVTOVAZ-RENAULT-NISSAN Purchasing Organisation (ARNPO). With Mitsubishi Motors in the Alliance we expect to create more economies of scale.

Engineering

Common Module Family: The Next Step in Integration
Common Module Family (CMF) represents a key step in the integration of the Alliance and a significant source of synergies moving forward.
CMF is not a conventional « platform sharing » scheme. Rather, it’s a modular architecture system that dissects the vehicle into four fundamental zones: the engine compartment, cockpit, front underbody and the vehicle’s electronic architecture. This modular architecture system allows the company to build a wider range of vehicles from a smaller pool of parts, resulting in more savings and greater value for customers.

Common Module Family (CMF)

CMF has four segments :
CMF-A: Small, fuel-efficient vehicles particularly in high-growth markets
CMF-B: Mid-sized vehicles
CMF-C/D: Larger vehicles, including many SUVs and crossovers
CMF-EV: Electric vehicles

By 2020, when CMF is fully deployed in plants worldwide, 70% of all Alliance vehicles with fall within the CMF scope. The approach is expected to cut purchasing costs by as much as 30% and engineering costs by up to 40%. The savings enables product planners to add more in-demand content to vehicles.
Nissan’s first CMF vehicles on the road include the all-new Nissan Trail (multiple plants worldwide), Nissan Rogue (Tennessee, USA, and Renault Busan plant, South Korea), and Nissan Qashqai (Sunderland, UK), all built on CMF-C/D architecture. Renault’s first CMF-C/D vehicles are the Espace, the Kadjar, the new Megane, Scenic and Talisman. In 2015, Renault began selling the Kwid in India, the first Alliance model built on CMF-A architecture. Nissan launched a Datsun model on CMF_A architecture in India 2016, the Datsun redi-GO.