70 per cent of vehicles will be on CMF architecture by 2020: Renault-Nissan

Chennai, July 5 (IANS) Franco-Japanese automobile alliance - Renault-Nissan Alliance - expects to roll out 70 per cent of its vehicles on the Common Module Family (CMF) architecture by 2020, the companies said.

In a statement, Renault-Nissan Alliance said the CMF is its unique system of modular vehicle architecture and an increasing source of synergies.

According to the statement, the Alliance is reaping benefits of CMF reflected in the launch by Nissan of the Rogue in North America, the Qashqai in Europe and the X-Trail in Japan and China.

Renault also successfully launched the new Espace, the Kadjar, the new Megane and Talisman, all based on CFM-C/D.

"In 2015, Renault began selling the Kwid in India, followed bythe launch of the Redi-Go by Datsun in mid-2016. Both are built in the Alliance's plant in Chennai, India, on the CMF-A architecture, which covers the smallest and most affordable category of cars," the statement said.

"With the launch of Common Module Family-A, the Renault-Nissan Alliance demonstratesits ability to enter a very competitive market such as India, where only few OEMs succeeded to answer the local customers' requirement for modern and affordable cars," Arnaud Deboeuf, Alliance Senior Vice President of Renault-Nissan BV and the Alliance CEO's Office was quoted as saying in the statement.

Meanwhile globally the Renault-Nissan Alliance generated 4.3 billion euros in synergies in 2015, one year ahead of schedule and an increase of 13 percent from 2014.

Purchasing, engineering and manufacturing were the main contributors.

Renault and Nissan generate "synergies" by working together to reduce costs, avoid spending and increase revenue.

Only new synergies - not cumulative - are taken into account each year. Synergies help Renault and Nissan meet their financial goals and deliver higher-value vehicles to customers.

Renault and Nissan, which together sell one in 10 cars globally, converged four key functions in 2014 - engineering, manufacturing engineering and supply chain management, purchasing and human resources.

While Renault and Nissan remain separate companies, each function is led by a common Alliance Executive Vice President.

"Convergence in four of our key business functions has resulted in creating value by reducing costs, avoiding expenses and increasing revenues. Thanks to the convergence, the Alliance expects to generate at least a,5.5 billion in synergies in 2018," Carlos Ghosn, Chairman and CEO of the Renault-Nissan Alliance was quoted as saying in the statement.