Renault-Nissan: Engineering Synergies Saved $925 Million

Renault SA and Nissan Motor Co. say their alliance saved $925 million last year by collaborating on vehicle engineering.

The companies figure they saved another $925 million by sharing powertrain components and $1.1 billion through integrated purchasing activities.

Last week the partners predicted they would cut product development costs by 30%-40% by 2020 with a new modular vehicle manufacturing strategy. They say the process also will reduce the cost of purchased parts by 20%-30%.