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2. Cooperation in All Major Areas

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2. Cooperation in All Major Areas allianceGBGuy 13/09/04 18:14 Page 12 2. COOPERATION IN ALL MAJOR AREAS STRUCTURAL COOPERATION PRODUCT PLANNING Renault and Nissan develop and market their own vehicles with respect for their individual brand identity. However, in the short term, when brand image is not involved and for specific products (such as Light Commercial Vehicles) in certain markets, Renault and Nissan do not exclude the possibility of selling adapted products Renault Trafic Nissan Primastar from their partner's range under their own brand name. Nissan's Barcelona Plant in Spain produces the Renault Trafic, the Double-badging and cross-manufacturing take full advantage of Nissan Primastar (and the Opel Vivaro), enabling both brands to exchanging best practices and efficiency within the Alliance. In meet the growing demand for compact vans. Europe, this initiative was initially aimed to support Nissan’s LCV sales drive. Vehicles double-badged and cross-manufactured in Europe Renault Nissan Start of sales by Nissan Master Interstar March 2002 Trafic Primastar September 2002 Kangoo Kubistar October 2003 Renault Kangoo Nissan Kubistar Mexico Nissan Platina, an adapted version of the Renault Clio sedan, was launched in April 2002. Renault Master Nissan Interstar 12-13 allianceGBGuy 13/09/04 18:14 Page 14 2. COOPERATION IN ALL MAJOR AREAS COMMON PLATFORMS Common platforms are developed as the two partners renew their C Platform line-ups. Renault and Nissan aim to share platforms (1.5 million vehicles per year per platform for mainstream vehicles) with a Start of sales Cumulative sales volume target for 2010 of approximately 10 Alliance platforms. through June 2004 Renault Mégane II September 2002 in Europe 935,474 B platform Nissan Lafesta end of 2004 in Japan — Start of sales Cumulative sales volume through June 2004 Nissan March March 2002 in Japan 316,529 Nissan Cube October 2002 in Japan 249,988 Nissan Micra January 2003 in Europe 266,624 Renault Modus September 2004 in Europe — Dacia/Renault Logan * September 2004 in Europe — Nissan Tiida September 2004 in Japan — * derived from the B platform C platform B platform 14-15 allianceGBGuy 13/09/04 18:14 Page 16 2. COOPERATION IN ALL MAJOR AREAS POWERTRAINS 3. Nissan 3-liter diesel engine (ZD 30): Cooperation in the common use and development of engines and Master and Mascott in 2004. transmissions within the Alliance is accelerating. Components from Nissan to Renault ZD 30 1. Nissan V6 3.5-liter gasoline engine (VQ 35): Vel Satis in February 2002 and Espace in October 2002. VQ 35 Components from Renault to Nissan 1. Renault 160Nm manual transmission (JH 160): March in 2001 and Micra in 2002. JH 160 2. Nissan 4WD rear differential unit (R 145): Kangoo 4x4 in May 2001. 2. Renault 200Nm manual transmission (JR 200): Almera in 2002 and Micra in 2003. R 145 JR 200 16-17 allianceGBGuy 13/09/04 18:14 Page 18 2. COOPERATION IN ALL MAJOR AREAS 3. Renault 1.5 dCi engine (K9K): Production by Renault of Nissan components Almera in October 2002 and Micra in January 2003. for Renault and Nissan Production at the Renault Cacia Plant in Portugal of Nissan ND manual transmission for Nissan models Primera and Almera, built at Nissan Motor Manufacturing (UK) Ltd., and Almera Tino, built at Nissan Motor Iberica, S.A., and for the Renault Mégane II from February 2002. K9K ND 4. Renault 1.9 dCi engine (F9Q): Common engines Primera in December 2002. (co-developed by both Renault and Nissan) 1. S2G and M1G gasoline engines: - S2G on Tiida in September 2004, - M1G on Nissan Lafesta at the end of 2004 and on a Renault car in 2006. F9Q S2G 2. M1D diesel engine: - M1D on Laguna II in 2005. 18-19 allianceGBGuy 13/09/04 18:14 Page 20 2. COOPERATION IN ALL MAJOR AREAS RESEARCH AND ADVANCED ENGINEERING MANUFACTURING As described in the “Alliance Vision - Destination” document, one of Renault and Nissan have actively exchanged and implemented best the objectives of the Alliance is to be among the best three automotive practices by working on the new step for further improvement of the groups in key technologies, each partner being a leader in specific Renault Production Way / Système de Production Renault (SPR) and domains of excellence. the Nissan Production Way (NPW). Renault and Nissan are cooperating on strategic fields of research in The Alliance Vehicle Evaluation System (AVES), already applied in all which they have common interests. This cooperation leads to the Nissan plants, replaced the AQR (Renault Quality Action) in all effective utilization of resources of both groups, covering a broader Renault sites from January 2003. range of potential technical solutions and accelerating work to achieve technology breakthroughs to bring new products to the market. New step: Renault and Nissan started jointly working on new activities that more directly contribute to manufacturing performance Some of the selected fields of cooperation are long-term research improvement, such as DST (Design Standard Time) for improvements themes in fuel cell vehicle applications, new high performance in the design stage, DSTR (Design Standard Time Ratio) and new materials and innovative vehicle performance features focused on aspects of ergonomics for improvements in the production stage, PIC customer benefit. (Product Introduction Cost) for improvements in the new product introduction stage, etc. PURCHASING Significant cost reductions in the Alliance have been achieved with joint purchasing and the building of a common supplier base: Renault-Nissan Purchasing Organization The Renault-Nissan Purchasing Organization (RNPO) was established in April 2001 as the first Alliance joint-venture company. The scope of joint purchasing activities and geographic responsibility of RNPO was enlarged, increasing the annual volume from $21.5 billion (as of the end of 2002) to $33 billion in January 2004. This amount represents 70% of the Alliance purchasing turnover. The expansion of RNPO’s scope consists in adding the purchasing of machinery and equipment, logistics and additional vehicle parts. In addition, RNPO's geographic responsibility has expanded to all Leading Competitive Countries (LCC): from Western Europe, Japan and North America to all areas where Renault and Nissan have industrial operations. Nissan Cuernavaca Plant, Mexico 20-21 allianceGBGuy 13/09/04 18:15 Page 22 2. COOPERATION IN ALL MAJOR AREAS LOGISTICS Inbound parts logistics (production parts) In 2003, synergies in logistics attained $115 million. The results of - Joint unitization centers in Spain, France and the U.K. in 2004; the Global Alliance Logistics Committee (GALC) and Alliance Logistics - Application of 5 step evaluation for X-dock globally and search for Taskforce (ALT), established in November 2002, largely contributed to synergies. these savings. The objective is to shorten delivery times and increase cost reduction through unifying logistics functions. Material handling in plants - Benchmark of parts delivery method in plants and establishment Overseas parts logistics: Completely Knocked Down (CKD) of new actions in 2004. - Common Key Process Indicators (KPI) and 5 step evaluation system started in April 2003. Renault and Nissan identified items Common standard packaging (production parts) to improve that are being implemented during 2004; - Common global packaging was developed in March 2004 and is - Common system is developed for new opportunities. One is now being adopted; new Knocked Down (KD) plant and another is global packaging - Joint development of upcoming manual transmission packaging management system. with best practices. Vehicle logistics Supply parts management (production parts) - Definition of synergies of overseas vehicle distribution in 2004; - In May 2003, a new working group to improve supply parts - Common KPI and 5 step evaluation system started end of 2003; management was established; - Start of joint study for distribution within Eastern Europe. - Three actions are under way: 1. Parts delivery accuracy improvement from production control point of view; 2. Improvement of ordering method; 3. Operational improvement through pilot plant activity. Nissan Toluca Center, Mexico 22-23 allianceGBGuy 13/09/04 18:15 Page 24 2. COOPERATION IN ALL MAJOR AREAS QUALITY The Alliance objective in terms of quality, as stated in the “Alliance Vision - Destination”, is to be recognized by customers as being among the best three automotive groups in the quality and value of its products and services in each region and market segment. Alliance Quality Charter INFORMATION SYSTEMS (IS) / The specific Charter defines Alliance quality rules and tools and is INFORMATION TECHNOLOGY (IT) implemented in all Alliance projects; version 2 has been available The Renault-Nissan IS/IT Office (RNIO) was established in September since January 2003. 2001 and then became Renault-Nissan Information Services (RNIS) in July 2002. The Charter applies to key quality processes: quality customer surveys, corporate quality target, new model development quality The intention, through increased collaboration, is to improve management, quality assurance in production, supplier parts quality performance through three main areas for progress: standardization assurance, service quality assurance (sales and after-sales), quality of infrastructures, global vendor management, and implementation technical improvement, warranty policies and procedures. of common business applications. The Charter brings Renault and Nissan closer by the implementation First achievements were the creation of a three-year IS master
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