Renault and Daimler provide 4 billion euros of synergies

"It's not good at the right time, and for good reason." Dieter Zetsche, CEO of Daimler, welcomed its strategic agreement with Renault-Nissan, during a press conference held Wednesday in Brussels, attended by Carlos Ghosn, CEO of the French group. "The benefits of this alliance are immediate and lasting. Renault and Nissan, synergies with Daimler net present value of at least 2 billion euros in terms of cost reduction and sales opportunities over the next five years, "said Carlos Ghosn. Synergies will be equal between Renault and Nissan.His German counterpart expects earnings "of the same magnitude as that listed for both Renault and Nissan," 2 billion euros.

The two leaders, who returned in detail on the industrial structure already known of this cooperation, reiterated the importance of this type of alliance in a competitive environment tense. "This partnership will enable us to expand our product portfolio, reduce costs and increase capacity," noted Dieter Zetsche. "We must take advantage of such cooperation to create added value for customers and a sustainable future. This is the key in the car market today, "said Carlos Ghosn.

No increase in participation

Both groups confirmed a mutual stake of up to 3.1%. Renault and Nissan will respectively 1.55% stake in Daimler. The latter take 3.1% in both groups.According to the leaders, this exchange of shares is purely "symbolic" and reflects "a fundamental reflection on cooperation. Alongside the conference, the Ministry of Economy renewed its "satisfaction" for this partnership by announcing its intention to take 0.55% stake in Renault Nissan, to maintain its participation at 15.01%, which gives the status of shareholder.

For now, any increase in participation between the two protagonists is excluded. "We needed a number that has a symbolic value, hence the 3%. We do not have much cash to inject into this type of structure. We therefore have no idea of extending the cross-shareholdings. Our goal is first to identify concrete results, "said Carlos Ghosn.No merger is also in the agenda.

Extend Cooperation

The two CEOs have confirmed that this partnership was a starting point. The two companies intend to "explore opportunities ahead" by expanding their strategic cooperation in the years to come. An exchange of modules and components between the Infiniti and Mercedes-Benz is expected, as well as an expansion of regional cooperation in the U.S. and in emerging countries, "which play an important role with great potential." China is particularly in the viewfinder of the two groups."It must be everywhere," said Carlos Ghosn.

In the long term, Daimler as Renault-Nissan expect a positive impact on employment, thanks to "better use of industrial capacity in France and Germany.

In this video, shot by Renault, Carlos Ghosn talks about the overall benefits of signing such a partnership:

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