Renault and Nissan Plan to Set Up a Joint Worldwide Purchasing Organization

    TOKYO, March 12 Renault and Nissan intend to set up a
joint purchasing organization to achieve the synergy objectives of the
Alliance.  Compared to the current separate organizations, this joint
purchasing organization would provide additional savings, especially 5% on
common projects, starting with the C-platform.  After consultation with the
employee-representative bodies, Renault Nissan Purchasing Organization,
equally owned by Renault and Nissan, would be established in April 2001.  This
first Alliance joint organization would initially handle about 30% of Renault
and Nissan's annual global purchasing turnover and further expansion to 70% is
to be expected based on the delivered performance.
    At the time of its launch, the scope of Renault Nissan Purchasing
Organization would consist of 17 families of commodities from powertrains
components, vehicle parts, raw materials, and services, representing about 30%
of Renault and Nissan's global annual purchasing turnover
(i.e. $14,500 million).  Renault and Nissan combined purchases currently
represent $50 billion worldwide.
    The new joint organization would have operations in Europe, Japan and the
United States.  Its staff would come from both companies.  Mr. Jean-Baptiste
Duzan, Head of Renault's Purchasing Department would be appointed Chairman and
Managing Director of the new joint organization and Mr. Itaru Koeda, Head of
Nissan's Purchasing Department, would be appointed Vice Chairman.  Mr. Hiroto
Saikawa, General Manager of the Purchasing strategy department of Nissan,
would be appointed Executive General Manager of the joint venture company.
    Activities would be divided into three areas, under the responsibility of
a General Manager: powertrains components, vehicle parts and service &
material.  The three General Managers would be assisted by an organization
consisting of 17 Global Supplier Account Managers (GSAM) and 17 deputy GSAMs.
Each group will have a GSAM in either Tokyo or Paris whose deputy will be in
the opposite city.  Each GSAM and his deputy would be in charge of a specific
commodity.  They would be responsible to develop the sourcing strategy, to
choose suppliers and to meet the quality, cost and delivery objectives of the
two companies.
    Renault Nissan Purchasing Organization would obtain greater savings from
global suppliers through bigger volume and faster decision-making.  Thanks to
this single organization, Renault and Nissan would be able to speak with "one
voice to suppliers" everywhere in the world, providing more consistent and
effective results.  Moreover, it would allow Renault and Nissan to share and
implement the best purchasing practices for cost management, quality and
delivery, while enhancing standardization to provide further scale effect.
    For purchasing performance, Renault Nissan Purchasing Organization would
report to both companies purchasing heads.  The effectiveness of the new
organization would be regularly reported to the Global Alliance Committee
(GAC).
    The new joint venture company would have a total headcount of less than
100 people on launch.  They would all come from current Renault and Nissan
purchasing organizations and the total headcount of purchasing staff would
remain unchanged after the implementation of this project.

     Contact:
     Nissan Motor Co., Ltd.
     Communications Department
     (Japan) Tel.       (03) 5565-2141
     (Overseas) Tel.  (03) 5565-2147
     (Common) Fax   (03) 3546-2669

     Renault Tokyo Liaison Office
     Corporate Communications
     Tel. (03)  4288-8481
     Fax. (03) 4288-8451

    (Or visit the Nissan Online News Bureau at http://www.nissannews.com)