Renault-Nissan vows to double synergies in convergence push

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Renault-Nissan vows to double synergies in convergence push

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PARIS (Reuters) – The Renault-Nissan <RENA.PA> <7201.T> alliance pledged on Friday to double savings from closer integration to 10 billion euros (8.89 billion pounds) by 2022, thanks in part to increasing cooperation with recently acquired Mitsubishi Motors <7211.T>. Combined annual sales volumes are expected to rise to 14 million vehicles over the same five-year period from about 10 million today, with revenue advancing by one-third to $240 billion, the alliance said in a statement. With 5.27 million cars and vans delivered in the first half, ahead of Volkswagen <VOWG_p.DE> and Toyota <7203.T>, Renault-Nissan now claims the mantle of the world’s biggest carmaker – although parent Renault has never consolidated the sales of its 43.4 percent-owned Japanese affiliate into its own. Alliance Chairman Carlos Ghosn has pledged to step up the pace of integration since Nissan took a controlling stake in Mitsubishi last year. The 18-year-old Renault-Nissan pairing has only recently begun rolling out cars on common architectures. Under existing plans, the alliance is seeking to increase synergies – from costs cut or avoided and revenue enhancements – to 5.5 billion euros next year from 5 billion recorded in 2016.

(Reporting by Laurence Frost and Gilles Guillaume; Editing by Sudip Kar-Gupta)
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