Introduction to Renault

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Introduction to Renault

Renault is an international automaker founded in 1898 and is a France based company. The company acts as a parent company for its subsidiaries that are located through out the world. The two main areas of Renaults business activities are the automobile division and the sales financing division. The automobile division handles the manufacturing and the marketing and the sales activities are controlled by the sales financing division. The manufacturing division comprises of the Renault , Samsung (South Korea ) and Dacia (Romania ) brands and is engaged in the design , development and marketing of passenger cars and light motor vehicles .

Renault is the parent company to three brands which are Renault Samsung Motors , Dacia and Renault and Renault is present in 118 countries . the group sales worldwide for the year 2011 was 2,7 million vehicles. The five biggest markets for Renault are France , Brazil , Germany , Russia and Turkey. Revenues for the year 2011 was 42,628 million euros ( car sales and financing ). It has been a leading brand for more than ten years in the LCV segment in Europe.

Introduction to Nissan

Nissan Motor Co LTD was established in the Yokohama City ( JAPAN ) in 1933 on 26th December. It currently manufactures vehicles in 20 countries across the world including Japan. It is a pioneer in manufacturing automobiles and the main business of Nissan is manufacturing of automobiles , automotive products and marine equipment. The main markets for Nissan are Japan , United States and Europe.

In the 1990s Nissan faced financial distress as there was recession in Japan and today it has grown and has comeback in the market as a big player and the revenue of Nissan for the year ended 2012 March was 113.614million USD and the worldwide sales 435,578 units which was an increase by 19 percent from the previous year ( 2012 March ) .

International Strategic Alliance

Co-operation between two or more companies belonging to different countries, whereby each seeks to add competencies by combining its resources with those of the other partner(s). It is based on a collaboration agreement and a defined scope of cooperation but can also include some exchange of equity, establishment of IJYs and other forms of international collaboration.

* Agreement for co-operation among two or more independent firms to work together towards common objectives * Companies in a strategic alliance do not form a new identity to reach their aims but to co-operate while remaining apart and distinct.

Types of Strategic Alliance agreement

• Collaborative Agreement
o least integrated form of international collaboration, based only on contractual agreement and no legal entity is created • Equity Participation
o exchange of some equity between the partners to reinforce the contractual agreement • Equity Joint Venture
• Consortium
o collaboration between three or more companies regardless of equity structure. A group of independent firms work jointly on a particular undertaking, which each contributing some particular resource input, or expertise

Renault Nissan Alliance

Renault and Nissan have agreed on a strategic partnership and it is not a merger or an acquisition. This strategic alliance agreement was signed on 27th march 1999. The two companies are joined together through a cross-share holding agreement. This alliance was made to broaden the scope of both the companies and now both the companies have substantially grown as the top five global automaker in the world. The Renault Nissan who have been strategic partners since 1999 now have nearly 350,000 employees and they control six major brands which are Renault , Nissan , Infiniti , Renault Samsung Motors , Dacia and Lada. They sold around 8 million vehicles in 200 countries in 2011 which brings them just behind General Motors and Volkswagen in sales by volume.

The reasons behind the alliance

Renault and...
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