Japanese automaker Nissan Motor is set to merge manufacturing and research functions with French carmaker Renault, in order to save over JPY400bn ($3.9bn) per year for the alliance.
To head the production departments of both companies, the Renault-Nissan alliance plans to appoint a manager starting April 2014. It will be followed by a similar structure for research and development (R&D).
The new structure will enable both the companies to assemble cars at same plants using shared parts, reported Nikki Business Daily.
Both firms will initially implement the new structure at their jointly held plant in India in 2015. Following this, they will expand the structure to more than ten countries by 2020.
In February 2013, Renault-Nissan alliance announced plans to invest about $320m (JPY30bn) to set up a low-cost vehicle manufacturing plant in India.
The alliance is expected to invest the amount to establish a second manufacturing plant at the company's site near Chennai city in India. It will manufacture Nissan's Datsun brand and low cost Renault models that are under development.
