A New Beginning………..
“It is said that need is the basic motivation for man to invent…..”
Yes…... This is the same need that made the 2 companies to come closer by eradicating all their barriers and join hands for a better tomorrow.
By 1999, the environment of car manufacturers had became very competitive. Globalization in the market Saturation of certain geographical areas for
production and distribution. Cut throat competition for opportunities for
survival.
Renault
Nissan
Founded 1898
Cooperation with Volvo 1990
Financial Distress1990
Alliance with Renault1999
Alliance with Nissan1999
Founded 1911
Established in 1933 Was a pioneer in the manufacturing of
automobiles Products: Automobiles, Outboard motors,
Forklift Trucks Main markets: Japan, United States, Europe, Revenue: 80.92 billion USD Profit: 460 million USD ( 2009)
Is a French automaker Main products: Automobiles, commercial
vehicles, financing Revenue: 38.97 billion USD Profit: 3.420 billion USD (2010)
Company was falling apart. Huge debts of $20 billion.But the root causes which led to the
above problems were; Recession in early 90’s in Japan No cross - functional & cross - regional
communication. Outdated style & design for its cars. High degree of bureaucracy.
Renault comparatively had very less problems….. Their main source of revenue was
concentrated only on Small & Medium Cars in Europe…..
Its 85% of sales was in Western Europe……
The alliance between Renault and Nissan was signed on 27th of
March, 1999
The Renault-Nissan Alliance is the third largest global automaker
Includes: Dacia, Infiniti, Nissan, Renault and Renault Samsung
Sold 7.2 million vehicles in 2010
2 global companies linked by cross-shareholdings
Significant presence in major world markets (United States,
Europe, Japan, China, India, Russia)
Renault Nissan
Respective objectives
Improving qualityInternationalize
Reduce CostsReduce Debt
Common objectives
Economy of scaleTechnological Know-How
Leader for the quality and attractiveness of products & services
Quality between the relationships among the managers &
engineers of Renault and Nissan.
Rich Business experience.
Technical skills.
Core Values – Balanced relations between 2 companies and
the development of strong identities for each of the brands.
Capital contributions and equity participations
Third largest global automaker (based on sales for the year 2008)
Global market share of 9% (by volume) Significant presence in major world markets
(United States, Europe, Japan, China, India, Russia)
Combined expertise and technology sharing• Nissan focuses the development of new gasoline
engines while Renault focuses on diesel engines• International development in emerging
markets• A partnership announced with Bajaj, an Indian
manufacturer, to develop an ultra-low-cost vehicle by 2010
• A partnership with the Russian automaker AvtoVAZ
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