/

Nissan, Renault say their alliance gave ¥400 billion benefit in 2013

JIJI

Automaker Nissan Motor Co. and French partner Renault SA said Wednesday their alliance generated 2.87 billion euros in benefits, or about ¥400 billion, in fiscal 2013.

Cost cutting and other savings are increasing every year as synergy continues to grow. The two companies plan to boost such effects to 4.3 billion euros by fiscal 2016.

The companies will step up cost-cutting by sharing modular parts for essential systems in their vehicles and using the same items in a wider range of models.

The two companies also expect positive effects from integrating four of their operations in April, including research and development.

The effects of the alliance were almost evenly shared by the two companies.

Lower costs and higher sales boosted earnings by about 1.4 billion euros, while the balance of the benefits came from savings on capital spending.

Renault’s fiscal year ends in December, whereas Nissan operates a fiscal year to March.