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News of  March 14, 2001

Renault and Nissan Plan to Set Up a Joint Worldwide Purchasing Organization

TOKYO - Renault and Nissan intend to set up a joint purchasing organization to achieve the synergy objectives of the Alliance. Compared to the current separate organizations, this joint purchasing organization would provide additional savings, especially 5% on common projects, starting with the C-platform. After consultation with the employee-representative bodies, Renault Nissan Purchasing Organization, equally owned by Renault and Nissan, would be established in April 2001. This first Alliance joint organization would initially handle about 30% of Renault and Nissan's annual global purchasing turnover and further expansion to 70% is to be expected based on the delivered performance.

At the time of its launch, the scope of Renault Nissan Purchasing Organization would consist of 17 families of commodities from powertrains components, vehicle parts, raw materials, and services, representing about 30% of Renault and Nissan's global annual purchasing turnover (i.e. $14,500 million). Renault and Nissan combined purchases currently represent $50 billion worldwide.

The new joint organization would have operations in Europe, Japan and the United States. Its staff would come from both companies. Mr. Jean-Baptiste Duzan, Head of Renault's Purchasing Department would be appointed Chairman and Managing Director of the new joint organization and Mr. Itaru Koeda, Head of Nissan's Purchasing Department, would be appointed Vice Chairman. Mr. Hiroto Saikawa, General Manager of the Purchasing strategy department of Nissan, would be appointed Executive General Manager of the joint venture company.

Activities would be divided into three areas, under the responsibility of a General Manager: powertrains components, vehicle parts and service & material. The three General Managers would be assisted by an organization consisting of 17 Global Supplier Account Managers (GSAM) and 17 deputy GSAMs. Each group will have a GSAM in either Tokyo or Paris whose deputy will be in the opposite city. Each GSAM and his deputy would be in charge of a specific commodity. They would be responsible to develop the sourcing strategy, to choose suppliers and to meet the quality, cost and delivery objectives of the two companies.

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