Nissan Motor Co and Renault SA are to combine their manufacturing and R&D operations in a move that will save the two automotive manufacturers a combined 400 billion yen a year and see them assemble cars using shared parts.

The new structure will be adopted at Renault’s manufacturing unit in Chennai, India, by 2015 and will be implemented at other plants in around 10 countries by 2020. If this project proves to be a success, it may be expanded to include Renault’s Russian partner, AvtoVaz.

Carlos Ghosn, chief executive of both Nissan and Renault, will appoint a manager by the beginning of April to oversee the production departments of both companies. Renault and Nissan have been partners since 1999.