Nissan Diesel Working With RVI To Cut Costs

February 1, 2000

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The financially strapped Nissan Diesel is reportedly hoping to cut material and component procurement costs 20% over the next three years through the worldwide purchasing assistance of Renault's truck subsidiary Renault V.I.

According to Japan's Kyodo News Service, Nissan Diesel has set up a task force responsible for cost management across all divisions. Since demand for trucks is banking on cost cutting to help bring it back to profitability.
Renault owns 22% of Nissan Diesel and 36.8% of parent Nissan Motor Co.
Details of the purchasing tie-up were not disclosed but it may be similar to a plan announced last year (see story 12/29/99) to integrate RVI and Mack truck brands in North America. That arrangement included a common organization to coordinate purchasing as well as engineering and product development. While the two brands would remain separate, RVI and Mack could also share engines, transmissions and chassis.

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