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Nissan & Renault Consolidate European Efforts

16 May 2000

    Paris - Through combined sales and marketing efforts, and various 
cost-saving measures, the Nissan and Renault joint venture expects to 
increase its bottom line by more than $1 billion of the next five 
years.  Francois Hinfray, Renault Sales and Marketing VP, and Norio 
Matsumura, Nissan VP/Overseas Operations, revealed the plans yesterday.

    By 2003, 817 jobs will be eliminated from Nissan's European 
operations.  However, Renault will add 437 jobs as the combined efforts 
come into play.  Renault will take over all "back-office" operations.

    Sales and distribution networks will be combined throughout Europe, in 
which about 500 regional hubs will replace main dealerships.  The 
consolidation is not expected to result in the closure of any dealerships, 
but that as many as 50% of the larger stores would become showrooms for the 
regional hub sales operations.

    Nissan will be designing and building a new 4-wheel drive vehicle that will 
carry the Renault name, and Renault will be producing a light van under the 
Nissan badge.

    Nissan and Renault expect that these measures will help increase their 
joint European market share for cars and light vans from 14.2 per cent to 
17 per cent by 2005.  The plans will affect operations in the UK, France, 
Germany, Italy, The Netherlands, Spain and Switzerland.


MJR