Renault-Nissan Alliance Says Mutual Savings Rate May Slow

The Renault-Nissan Alliance says the growth in operational savings it realizes by integrating operations may slow over the next year or so.

The alliance reported record savings of €4.3 billion ($4.8 billion) for 2015, achieving that target a year earlier than scheduled. CEO Carlos Ghosn told analysts the companies could reach €5 billion in savings this year. 

But Arnaud Deboeuf, the senior vice president who leads convergence efforts for the 17-year-old alliance, tells reporters the pace of synergy gains is likely to ebb. He cites variations caused by the timing of new-model launches and uncertainties about the U.K.’s impending departure from the EU and the aftermath of last year protracted argument with the French government over control of the alliance’s business decisions.

The two carmakers continue to integrate their engineering, production, purchasing, human resources and supply chain management activities. Now they are looking at ways to merge aftermarket activities too.