Nissan-Renault Case

Topics: Ford Motor Company, Automobile, Renault Pages: 2 (445 words) Published: February 22, 2011
Renault/Nissan: The Making of a Global Alliance
The Renault- Nissan Alliance is a unique Group of two global companies linked by cross-shareholding. They are united for performance though a coherente strategy, common goals and principles, results-driven synergies, hared best practices. They respect and reinforme their respective identities and Brands. Before the Alliance 1999, Nissan needed Renault’s cash to reduce its dept and Renault wanted to learn from Nissan’s success in North America. Nissan have gone through lot of changes so it has a lot of knowledge in gaining more profitability and competitiveness. Before the Alliance Nissan had a dept of 11.2 billion, so Renault paid a great part of its dept in return of its knowledge. Nissan-Renault has been affected by conditions such as voluntary export restrains, tariff of Europe, need of new light commercial, vehicles in India and commissions rules in Europe. Therefore, these restraints served the demand for Japanese automobile as well as to create new markets for Japanese automobile as trucks and luxury vehicles. Similar happened when Nissan try to enter to the European Market. Both companies where interested by making alliance to develop potential synergies where both firms maintain their operational freedom. The foundation of the alliance focuses on the need for the negotiation of a formal equity joint venture. This means that they will bring engineering teams together and sharing knowledge. In another perspective of business the alliance between Renault and Nissan of integrating two companies for the improvement of coordination and cost reductions. Both will reduce their costs by benefiting from economies of scales and this will also increased their bargaining power towards suppliers. The 2 companies will remain disconnected and independents. Advantages for the alliance was that this 2 companies made possible many joint projects such as the gasoline tank, the steering wheel, stabilizing system and also...
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