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NINETY EIGHT REGENCY

Renault-Nissan to co-develop new SUV, sedan platform, report says

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Renault-Nissan to co-develop new SUV, sedan platform, report says

September 23, 2010 06:01 CET

(Reuters) -- Renault SA and Japanese alliance Nissan Motor Co. will jointly develop a platform for at least 10 models to reduce its suppliers and lower procurement costs by about one-third, the Nikkei business daily said.

The companies plan to design a common platform for mid-sized SUVs and sedans, and also plan to standardize 70 key components -- including windows and brakes -- that make up about 80 percent of the total cost for parts and materials, the daily said.

Nissan's X-Trail and Dualis SUVs and Renault's Fluence sedan and Megane are among the models that will share the platform and components, Nikkei said.

The companies expect to cut parts procurement costs for mid-sized vehicles by about 30 percent, or several hundred billion yen a year, through bulk purchasing, the newspaper said.

The common platform and standardized parts will be used in vehicles beginning 2013 and will account for about 1.5 million units a year -- roughly a quarter of the total that the two automakers sold globally last year, the newspaper reported.

Although the two automakers started buying materials and parts through a joint procurement entity in April 2009, cost benefits have been limited so far as they share only eight types of components, it added.

Read more: http://www.autonews.com/apps/pbcs.dll/article?AID=/20100923/ANE/309229942/1317#ixzz10MZ3x1k9

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