Nissan / Renault Negotiation

Topics: Carlos Ghosn, Renault, Truck manufacturers Pages: 3 (727 words) Published: October 2, 2014
Nissan / Renault Negotiation
If you are Renault, what would you present as the “Big Picture” (outlook and conditions proposal) for an alliance to the Nissan Board of Directors? Present it and negotiate it with Nissan. Your presentation shall include the points of: 1. Strategic objectives and scope of alliance

2. Analysis and proposal of potential operational synergies (brands, product range, geographic coverage, technology and expertise, production capacity, R&D, engineering, QC, manufacturing sites, marketing & services, finance and capitalization, market share, etc.) 3. Design of alliance structure (ownership structure, management & governance structure, organizational structure, special project teams, etc.) 4. Agenda of alliance negotiation & formation

1. Strategic objectives and scope of alliance
Strategic objectives
a. Renault’s total global market share was around 4%  increase the market share. b. Renault was confined to European market  need of a global partner to launch products on the global market and facilitate access c. Nissan could provide Renault access to Asian & U.S market. d. Renault could help Nissan with financial problems

e. in combination Nissan and Renault would become a top world player. Scope of alliance
a. Capital Alliance
b. Equal status and participation in management
c. Participation in Nissan motors and Nissan diesel
d. Renault 36% stake in the group
e. Renault managers in Nissan team
f.  both parties keep independence

2. Analysis and proposal of potential operational synergies a. Complementary product range: small to medium cars (Renault) and big size cars (Nissan) b. Geographically complementary: Nissan Asia, japan Africa and north and central America, Renault western Europe and south America- increased geographical coverage c. Worldwide overcapacity of producing cars: cooperation between Nissan and Renault: better use of capacities, lower costs per unit, platform integration d. Nissan 26 platforms,...
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