Renault and Nissan is pooling their manufacturing and research & development resources as part of a goal to save more than 400 billion yen ($3.86 billion) per year. The alliance will be led by dual-CEO Carlos Ghosn. A manager will be appointed to oversee the production of both companies as early as this April.
Nissan and Renault will be assembling cars together and use shared parts. The new structure will happen at their jointly held factory in India as early as 2015. It will be expanded to over 10 countries by 2020. Together, the companies own around 50 factories worldwide. The Renault-Nissan alliance was formed in 1999.
The companies said that the alliance generated 2.69 billion euros ($3.68 billion) of new cost savings in 2012, which is up from 1.75 billion euros in 2011.