Renault-Nissan Alliance

In: Business and Management

Submitted By sgatteo
Words 1383
Pages 6
Renault-Nissan Alliance is a strategic Franco-Japanese partnership between automobile manufacturers Renault, based in Paris, France, and Nissan, based in Yokohama, Japan, which together sell more than 10% cars worldwide.[1] The companies, which have been strategic partners since 1999, have nearly 350,000 employees and control six major brands: Renault, Nissan, Infiniti, Renault Samsung Motors, Dacia and Lada.[2] The car group sold 8.1 million cars worldwide in 2012, behind Toyota, General Motors and Volkswagen for total volume.[3]
The strategic partnership between Renault and Nissan is not a merger or an acquisition. The two companies are joined together through a cross-shareholding agreement. The structure was unique in the auto industry during the 1990s consolidation trend and later served as a model for General Motors and PSA Peugeot Citroën,[4] PSA Peugeot Citroën and Mitsubishi, and Volkswagen and Suzuki,[5] though the later combination failed.[6] The Alliance itself has broadened its scope substantially, forming additional partnerships with automakers including Germany's Daimler, China's Dongfeng Motor, and Russia's AvtoVAZ.
Corporate Structure and Strategy
The Alliance is a strategic partnership based on the rationale that, due to substantial cross-shareholding investments, each company acts in the financial interest of the other—while maintaining individual brand identities and independent corporate cultures. Renault currently has a 44.4 percent stake in Nissan, and Nissan holds a 15 percent stake in Renault (non voting, givng Renault effective control. Although more companies have adopted such an arrangement, it remains controversial. Some business journalists have speculated that the companies should be joined in a conventional merger in order to make a "bold" move,[8](subscription required) while other interested parties have said that the companies…...

Similar Documents

Renault

...RELEASE January 17, 2012 RECORD SALES FOR THE RENAULT GROUP IN 2011 The Renault group sold 2,722,062 vehicles worldwide, an increase of 94,697 (+3.6%). Sales outside Europe rose 19.2% and now account for 43% of the total. 2011 highlights • • Strong growth was driven by sales outside Europe and by the Renault brand (+6.8%). In Europe, Renault remained the No.2 brand for passenger cars (PC) and light commercial vehicles (LCV), taking 8.6% of the market. The Renault group led the LCV market for the fourteenth year running, with a 15.6% share of the market. Renault laid the foundations for the future by launching a range of Zero Emission (Z.E.) vehicles at year’s end, including Fluence Z.E. and Kangoo Z.E. Recently named International Van of the Year 2012, Renault’s electric van was selected by 19 major French companies (winning a contract to supply 15,600 vehicles). • Commenting on these results, Jérôme Stoll, Executive Vice President, Sales and Marketing & Light Commercial Vehicles, Chairman of Europe Region, said: “In 2011, the Renault group beat its own record, selling 2.7 million vehicles, and pursued its global expansion, generating 43% of its sales outside Europe. Despite mixed results in Europe, Renault remains the market’s No.2 brand and was the LCV leader for the fourteenth year in a row. Last year also ushered in the era of the affordable electric vehicle, with the launches of Renault Fluence Z.E. and Renault Kangoo Z.E.”. Corporate Communications 68......

Words: 2197 - Pages: 9

Nissan Case

...1. To enlist support from the employees, I think a shared vision and a clear strategy is key success factors. One of the fundamental problems when Carlos Ghosn arrived at Nissan was the lack of vision from management. By a restructuring in the organization and the grouping of Cross Functional Teams, I believe that the explaining and communication sharing, hereunder common vision, across the entire company was improved. Next step was the formulation of the new strategy. When formulating a strategy it is very important to choose a strategy that is compatible with the organizational culture. It is my opinion that Carlos Ghosn succeeds with the adaption of strategy into organizational structure, by letting the employees in the CFT’s create the strategy themselves, or at least be a big part of the strategy creation. In order to achieve an effective strategy execution you need to adapt the culture to the selected strategy. By reaching to conclusions of plant closures and employee reductions, I think that the CFT’s managed to adapt the culture to the selected strategy. Overall Carlos Ghosn experienced a willingness of the Nissan employees at all levels to change their mindset and embrace new ideas. In my opinion Carlos succeeded in enlisting different parts of the organization, because he created and communicated a shared vision and included many of the employees in the new strategy and the underlying process. The employees in the Cross Functional Teams and......

Words: 916 - Pages: 4

Nissan Electronic Car Strategy

...1. Explain Nissans strategy in EVs including the Alliance? EVs, the electronic vehicle that Nissan brought to the market. This kind of vehicle can use electric energy instead of gas as the power of engine. It is a special new technology which is energy saving. The main strategies include business strategy, global strategy and corporate strategy includeing the alliance. Nissan's business strategy of EVs is differentiation. Because of the feature of Nissan's product is different from most of products in other vehicle company. It's a new technology which is all electric vehicle and zero emission. Unlike several companies, Nissan does not choose to produce hybird vehicles like HEV and PHEV. Instead, Nissan focused on complete electronic vehicle like the model of LEAF. Nissan also has two of its own business models for their EVs. The first one is to sell the car and the battery at one unit, which is same with other auto makers. But the second one is sell the car and leasing the batteries which is unique. In terms of reputation based on social culture, it's all win. Since the LEAF is good for environment and good for public. On the other hand, Nissan does not selling low price as their strategy in order to attract customers. Instead, Nissan focuses more on service. It said that in essence it was selling a car......

Words: 1301 - Pages: 6

Supply Chein Renault

...de la Supply Chain de Renault  un enjeu incontournable pour rester compétitif sommaire ¤  1. Introduction ¤  2. L’environnement Industriel ¤  3. La Supply Chain ¤  ¤  ¤  ¤  ¤  3.1 La conception 3.2 La fabrication 3.3 La distribution 3.4 La vente 3.5 Les Achats ¤  Conclusion 1. Introduction La SC est aujourd’hui une source de compétitivité majeur au sein de Renault. La stratégie de la SC Renault est un mélange de réactivité et de flexibilité alors que l’entreprise produit des séries de masse. Quelques données et quelques chiffres: - Baisse des coûts logistiques de 9 % entre 2006 et 2009. - Nomination d’un directeur SC monde en 2008 - Baisse de 40 % des défectuosités dues au transport des véhicules depuis 2008 - Synergie avec Nissan : baisse de 56 millions des coûts en 2009 et de 130 millions en 2010… Après la description de l’environnement industriel, nous allons donc vous présenter la stratégie SC à tous les niveaux de l’entreprise depuis la conception jusqu’à la vente. Introduction Introduction ¤  La supply chain Renault ¤  Source de compétitivité majeur au sein de Renault ¤  Mélange de réactivité et de flexibilité alors que l’entreprise produit des séries de masse. ¤  Quelques chiffres et données : ¤  Baisse des coûts logistiques de 9 % entre 2006 et 2009. ¤  Nomination d’un directeur Supply Chain Monde ¤  Baisse de 40 % des défectuosités dues au transport des véhicules depuis 2008 ¤  Synergie avec Nissan : baisse de 56......

Words: 2047 - Pages: 9

Renault Nissan Alliance

...The International Journal of Organizational Analysis 1997, Vol. 5, No. 2 (April), pp. 156-179 GAINING A PERSPECTIVE ON INDIAN VALUE ORIENTATIONS: IMPLICATIONS FOR EXPATRIATE MANAGERS Suresh Gopalan Joan B. Rivera West Texas A&M University India's emergence in the international business arena presents challenges to Western-trained expatriate managers assigned there. These expatriates are familiar with management theories and practices based on value orientations very different from those in India. Kluckhohn and Strodtbeck's Value Orientations Framework is used to provide an overview of the different types of cultural values an expatriate manager will confront in Indian society. The impact of Indian values on various management practices, including team composition, leadership, motivation, and human resource management functions is also discussed It is hoped that this examination of the dominant value orientations of Indian employees will facilitate the successful transfer of Western expatriates to India. Over the last two decades, the Pacific Rim countries of Japan, South Korea, Taiwan, China, and Southeast Asian countries of Thailand, Malaysia, Hong Kong and Singapore have achieved tremendous economic success (Adler, 1994; Foster, 1995). A relative newcomer to this group of countries is India, which is emerging as an industrial power to be reckoned with. As a consequence of the free market reforms and economic liberalization programs pursued by the Narasimha Rao......

Words: 10568 - Pages: 43

Renault and Volvo

...Case Study 2.2: The Failed Merger between Renault and Volvo In 1993, merger talks finally broke down between Renault and Volvo. A merger between the two companies had seemed the inevitable consequence of a number of years of collaboration and the plans seemed well set. Cooperation between the two firms had begun in 1990 when Renault took a 25 per cent share in Volvo cars and a 45 per cent share in their truck division. Volvo, for its part, took a 20 per cent share in Renault. The early collaboration took the form of an exchange of engines, the joint purchasing of components and joint developments in quality control. The cooperative arrangements between the two companies were a constant source of internal criticism, which focused on the highly bureaucratic procedures that had been established. In this sense, a full merger was seen by both parties as the more favourable option. The strategic fit between Renault and Volvo seemed ripe for merger. Volvo had strengths in the large car market, where Renault had consistently failed to make an impact. Renault’s strengths lay in the manufacture of small cars and in diesel technology. In terms of market, Volvo was stronger in Northern Europe and especially North America and Renault had a larger market share in Southern Europe and South America. Both companies were probably too small to survive in a globally competitive volume car market. In Europe and the USA, merger was a route for survival, particularly in the face of......

Words: 1144 - Pages: 5

พันธมิตรแห่งความสำเร็จ Renault-Nissan

...พันธมิตรแห่งความสำเร็จ Renault-Nissan ย้อนกลับไป 13 ปีที่แล้ว ก่อนที่ Renault และ Nissan ประกาศความร่วมมือเป็นพันธมิตรกัน ในปี 1999, Nissan ในขณะนั้น แม้จะเป็นผู้ผลิตรถยนต์ขนาดใหญ่เป็นอันดับที่ 2 ในประเทศญี่ปุ่น แต่ก็อยู่ช่วงที่ประสบภาวะตกต่ำอย่างหนัก โดยผลประกอบการขาดทุนมาตลอดตั้งแต่ปี 1992 (ยกเว้นปี 1996) ส่วนแบ่งตลาดในประเทศตกต่ำลงตลอด 26 ปีที่ผ่านมาและไม่มีทีท่าจะสิ้นสุด ภาระหนี้สินที่มีอยู่สูงถึง $20 billion ซึ่งมากกว่า ขนาดธุรกิจของ Nissan อยู่ถึง 4 เท่า ธนาคาที่เคยให้กู้เงินมาตลอด ก็หยุดที่จะปล่อยกู้ให้ พร้อมทั้งกดดันให้ Nissan พยายามหาคู่ธุรกิจเพื่อช่วยลดภาระหนี้สินลง และเพิ่มเงินสดให้ธุรกิจรอดพ้นจากภาวะล้มละลาย สาเหตุที่ทำให้ Nissan ตกต่ำเป็นผลมาจาก โครงสร้างการบริหารงาน ที่ล้าสมัยคล้ายระบบราชการ (Bureaucratic company) มีลำดับขั้นและการตัดสินใจที่ซับซ้อน และรูปแบบการบริหารก็ไม่คำนึงถึงประสิทธิภาพการผลิต มีระบบ Supply Chain ซับซ้อนจากการที่มี ผู้ผลิตชิ้นส่วน (Supplier) มากกว่า 3,000 ราย สำหรับ 25 platforms มีรถเพียง 4 รุ่นเท่านั้นที่กำไรได้ จากทั้งหมด 43 รุ่น ในปี 1992 Yukata Kume, CEO มีความพยายามที่จะแก้ปัญหา โดยออกมาตรการ ‘Plant Closing’ เพื่อที่จะลดความซับซ้อนของระบบ supply chain และเพื่อลดต้นทุนโดยรวม แต่ภาวะตกต่ำก็ยังคงดำเนินต่อไป ในปี 1993, CEO คนใหม่ Yoshifumi Tsuji ยังคงดำเนินการด้วยวิธีคล้ายๆเดิม และในปี 1996 ก็มีการเปลี่ยนตัว CEO อีกครั้งเป็น Yoshikazu Hanawa ซึ่งอยู่ในช่วงที่เงินเยนอ่อนตัวจึงช่วยให้บริษัทสามารถส่งออกรถได้มากขึ้น แต่ก็เป็นเพียงช้วงสั้นๆ จนกระทั่งถึงปี 1998 ที่ภาวะที่เลวร้ายยังไม่สามารถแก้ไขได้ Hanawa......

Words: 518 - Pages: 3

Renault Nissan Alliance Business Management

...Renault Nissan Alliance Cotina Mills BSA 555 MBA 462 October 21, 2013 Dr. Peter Natale CERTIFICATION OF AUTHORSHIP: By my signature, and to prevent HONOR CODE violations, I certify that I am the author of this paper and that any assistance I received in its preparation is fully acknowledged and disclosed in the paper. Through the use of APA format, I have cited any sources from which I used data, ideas or words, either quoted directly or paraphrased. I also certify that this paper was prepared by me specifically for this course. Student Signature: __________________________________ Cotina Mills Table of Contents Introduction ……………...………………………..………………………………………….. 3 Vision……………………………………………..…......……………………………………..4 Mission…………………………………………………………………………………………4 Issue…………….………….………………..………………………………………………….5 Strategy…..…………………………………..…………………………………………………7 Current Operations……………………………………………………………………………...9 Introduction Renault–Nissan Alliance is a strategic Franco-Japanese partnership between automobile manufacturers Renault, based in Paris, France, and Nissan, based in Yokohama, Japan. Together they sell more than one in 10 cars worldwide. The companies have been strategic partners since 1999 and have nearly 350,000 employees. They control seven major brands: Renault, Nissan, Infiniti, Renault Samsung Motors, Dacia, Datsun and Lada. The car group sold 8.1 million cars worldwide in 2012, behind Toyota, General Motors and Volkswagen. As of......

Words: 2697 - Pages: 11

Nissan Renault

...Renault/Nissan: The Making of a Global Alliance Prepared By: Jason Park & Isaac Hattem Why is Renault seeking a strategic partner? What are Renault’s strengths and weaknesses in seeking a partner? The most successful strategic alliances are between companies with complementary strengths and weaknesses. Renault has been building cars since it was started under the name Socié Renault Frè té res. Louis Renault, his brothers Marcel and Fernand, and his friends Thomas Evert and Julian Wyer founded it in 1899. Since the beginning they have been an industry leader in small car designs, combining functionality with style. In 1998 Renault was the world‟s ninth-largest car manufacturer with 4.3% of the market. During the 90‟s globalization was occurring in all industries including the automobile industry. Major manufactures were seeking strategic alliances and mergers as ways to increase market share, reduce costs, and improve productivity. Renault has been an established French automaker since it started producing cars in 1897. Like many other companies Renault has been looking to expand into the Asia for its large potential market. They felt that the best way to do this was through a strategic alliance. Renault has been looking for another automobile manufacturer to peruse a possible alliance with since the early 90‟s. From February 1990 to December 1993 Renault attempted a merger with Swedish car manufacturer, Volvo. It was expected that the merger would go through, than in......

Words: 8119 - Pages: 33

Nissan Motors Lean Leap

...| Nissan Motor Company | Revival Plan Review | | ) | | In 1987 Japan’s economic expansion was driven by the inflation of stock prices and real estate values. As consumer confidence increased, so did the population’s appetite for luxury goods. In response to this national trend in consumer spending, Nissan Motor Company (Nissan) launched an aggressive expansion plan to meet the demands of the marketplace. The organization invested heavily in new manufacturing facilities and upgraded their distribution network. Nissan’s debt grew from $11.8B to $32.7B. Japan’s bubble economy collapsed in the early 1990s and Nissan’s profits deteriorated in parallel (Wiki – 2011). In response to a dire operating situation, Nissan formed a partnership with Renault in 1999. While the injection of capital was much needed by the Japanese car manufacturer, the most important asset exchanged in the strategic alliance turned out to be Carlos Ghosn, the Renault Executive Vice President appointed to turn around Nissan. The following analysis focuses on Carlos Ghosn’s leadership and the Nissan Revival Plan (NRP). The NRP saved Nissan and its roots seem to have originated from the Lean Action Plan framework. Get Started (First Six Months) Find a change agent (Score - 5 of 5) The Lean Thinking textbook places a considerable amount of emphasis on starting the Lean Leap. While it may seem basic in nature, kicking off the process is not easy, and it requires an organization to have an......

Words: 3060 - Pages: 13

Globaloganization of Renault Development Strategy

...Globaloganization of Renault Development Strategy By Said Cherkaoui Executive Briefing: This article presents the drive of Renault from the edge of bankruptcy to the rise of its model Logan to international preeminence, fame and success. At the same time, Renault concentrated its production in countries that have been considered by the major car manufacturers as solely a marketplace and not the location of their production. For Renault, the first half of the 1980s were “the crossing of the desert” when the French automaker reached the edges of bankruptcy, while Volkswagen continued to expand in terms of production and market reach. Volkswagen developed its international base through the acquisitions in 1991 of Skoda, the automobile manufacturer in the Czech Republic and SEAT, the Sociedad Española de Automóviles de Turismo. After the withdrawal of Fiat in 1981, the Volkswagen Group subsidiary Audi AG signed a cooperation agreement with SEAT, becoming the major shareholder in 1986, and 100% owner of the company. In 1990, SEAT expanded its operations in China and Latin America. In comparison, Renault put the brakes on its international drive and concentrated its efforts on solving internal dissensions in the aftermath of the terrorist slaying of its CEO. Renault also focused on renewing its relationship with the new French Government, smoothing the resistance of left-wing Unions, finding acceptable solutions to its large and aging North-African......

Words: 1329 - Pages: 6

Nissal-Renault Hbr Case

...you think made this alliance successful? Nissan Motors Company, an automobile manufacturer in japan had serious financial debt totaling up to $20 billion and it was losing substantial market share for over 8 years. Until French auto maker Renault entered with a proposed plan to partner both companies in what became known as the Renault-Nissan B.V. (Besloten Vennootschap) strategic alliance. Much had been accomplished in the first three years of the alliance. Nissan and Renault had the opportunity to take advantage of each others core strengths and capabilities. Nissan had market reach in North America, while Renault was extremely successful in Europe. Nissan was known for their engineering, but was a company on the verge of collapse. Where one company lacked the other flourished and this proved to be beneficial to both. Renault-Nissan had created several different functional teams within Nissan to maximize synergy. These teams covered different departments, management levels and regions for both companies and were meant to ensure that the alliance would be managed strategically.Once allied with Renault, Nissan’s once poor financial performance and debt dramatically decreased, and Nissan’s profits totaled 47% of Renault’s profit for 2001. World market share rocketed at more than 9.2%, placing Renault-Nissan in the top five automakers in the world. 2) Based on your study of this case, what would you say about the meaning of an alliance? An alliance is like a......

Words: 519 - Pages: 3

Quality Nissan

...mendorong mobil mereka dalam kenyamanan dan ketenangan pikiran dalam jangka panjang. Untuk mengaktifkan perbaikan nyata dalam kualitas produk, tidak hanya desain fase dan tahap produksi, tetapi juga melalui kemitraan yang kuat dengan pemasok, Nissan adalah meningkatkan komponen kualitas dengan komponen. Nissan melakukan inspeksi tindak lanjut pada kendaraan yang telah di pasar untuk beberapa tahun untuk mengukur daya tahan mereka. Memperkuat baik desain dan produksi untuk memotong jumlah cacat yang terjadi dalam waktu tiga bulan pembelian. kualitas desain upgrade Mobil memiliki sejumlah besar bagian. Sekitar 65 persen dari mereka memiliki nol cacat di masa lalu, dan dari sisa 35 persen telah menyebabkan masalah. Meningkatkan kualitas desain sebelum produksi dimulai adalah salah satu cara penting untuk meningkatkan persentase produk tanpa masalah ke tingkat maksimum. Meningkatkan presisi komponen dalam diagram desain meningkatkan kualitas orang-orang yang masuk ke produksi massal. Nissan menggunakan metode yang disebut desain review (DR) untuk mengembangkan kualitas tinggi bagian. Selama proses DR, ahli desain bekerja sama untuk meninjau potensi risiko untuk setiap bagian, dan menemukan cara-cara untuk mencegah masalah secara proaktif. Nissan telah mengadopsi metode DR baru yang memungkinkan inspeksi desain lebih cepat dan lebih akurat. Ini telah secara luas memperluas wilayah DR, dan didukung pengembangan lebih bagian bebas masalah. personil bersertifikat......

Words: 1403 - Pages: 6

Renault & Nissan

...The Renault and Nissan alliance Renault, the oldest automaker in France, had been nationalized by Charles de Gaulle in 1945. In the late 1990s, its financial performance had been buoyed by a strong European car market, several popular new models, and extensive cost-cutting. So it was time for Renault to find the partners again since merging with Swedish automaker Volvo had failed due to not match objective; internationalization. In 1997, the Asian financial crisis was like the opportunity for Renault. At that time, Nissan, a Japanese company with a famous bureaucratic management style, was a company on the verge of collapse. It faced with the loss of market share and poor returns. For worse, it was in debt and was under the pressure from the bank. These brought Renault and Nissan to ‘The Renault-Nissan Alliance’ in March 1999. The objectives of Renault are to improve the quality and internationalization. Nissan’s objectives are reduce the cost and the debt. In practice, they formed cross-company teams to study and realize synergies across the major functional areas of both firms since the alliance. They combined two nations together. CCTs had to prepare a report on their progress to the Alliance Coordination Bureau (CB) which functions were providing specialized technical advice, trying to resolve companywide policy issues that went beyond a single CCT, and trying to resolve specific conflicts within the CCTs in a given area. CB must make sure decisions are being taken on......

Words: 987 - Pages: 4

Nissan Strategic Analyssis

...Nissan Company: Abstract * Nissan is one of the world’s largest automobiles company, * Manufacturing locations in 18 nations and serving in around 160 locations. * In year 2007, Nissan’s Executive Vice President, Tadao Takahashi mentioned its strategy of moving to transnational from multi-domestic so at present Nissan has increased its focus on emerging markets like India and Russia. This presentation aims to evaluate Nissan’s “Go-Global” strategy. In this analysis, we will try to assess the various imperatives that ……… * Company has to operate at multiple locations, * How it chooses among various locations * How it goes about implementing the expansion plan. * Studying Nissan’s global strategy and focusing on its moves specifically in India and Russia. This analysis will conducted by using various analysis tools like porter 5 forces, SWOT analysis, and PESTEL analysis as well value chain and after analysis will suggest the better strategy for betterment of company and for future prospects. Introduction With the increasing trend of globalization and heightened competition, most of the companies at some point of time think of expanding to new locations because of different imperatives ranging from efficiency, growth, competition, knowledge or mix of few. Each company decides its own parameters while making strategic choices of a market or a country NISSAN at a glance: * Nissan is a multinational automaker headquartered in Yokohama,...

Words: 2686 - Pages: 11