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Renault and Nissan form joint purchasing division

Renault and Nissan have created a joint purchasing division to reduce their combined £34 billion spend on parts, materials and services.

The French company, which has a 36.8% stake in Nissan, says the division will handle 30% of their annual purchases, which will be increased to 70% should the venture be successful.

Quoted in the Financial Times, Pierre-Alain De Smedt, Renault chief operating officer, said: “The number of tier one suppliers could be cut in half, but most of them will be retained as tier two or three suppliers. It's more of a change of hierachy.”

Jean-Baptiste Duzan, head of Renault's purchasing department, is chairman and managing director of the new organisation, which will employ less than 100 people.

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