The Renault Nissan Case Study
29/10/13
The Renault Nissan Case Study
Phases and aims
In March 1999 Renault and Nissan signed a comprehensive partnership agreement which formed a bi national automobile group of global scale. This agreement was the kick‐off for a win ‐win partnership because it gave Nissan on the one side the so much needed cash infusion, the alliance allowed Nissan also toexpertise in marketing,market and to enjoy synergies with Renault Nissan gained from it brought them concentrate on the US design and platform strategy. Moreover in Europe as well as Renault's greater know ‐how in small passenger cars. For Renault on the other side the alliance gave the global scope to stay competitive, so it gave them access to the Asia‐Pacific market and allowed the return to
Latin‐America. The alliance also helped to round up Renault's product portfolio, especially with Nissan's light commercial vehicles and large passenger cars. Furthermore Renault could gain from Nissan'sknow ‐ how in the manufacturing process. To sum it up the alliance showed an exceptional fit based on the partner's complementary strengths and formed the fourth largest automotive company in the world with an output of 4.9 million vehicles and 9.1% market share worldwide in 1999.
From the very beginning three overwhelming principles have accompanied the alliance: To share resources in order to realize economics of scale, to leverage the complementary strengthsin terms of products, markets and know ‐how in order to improve efficiencyand finally to preserver the separate brand principles in order themaintain a strong brand image and but contrasting corporate cultures to
These identities allowed to two companies with similar seize, appeal to a broader customer base. pursue a common strategyof profitablegrowth.
In detail the alliance was processed in two phases. In the firstphase in 1999 Nissan took an 36.8% equity stake in Nissan for EUR 4.4bn with the option for Nissan to take a stake in Renault
The Renault Nissan Case Study
Phases and aims
In March 1999 Renault and Nissan signed a comprehensive partnership agreement which formed a bi national automobile group of global scale. This agreement was the kick‐off for a win ‐win partnership because it gave Nissan on the one side the so much needed cash infusion, the alliance allowed Nissan also toexpertise in marketing,market and to enjoy synergies with Renault Nissan gained from it brought them concentrate on the US design and platform strategy. Moreover in Europe as well as Renault's greater know ‐how in small passenger cars. For Renault on the other side the alliance gave the global scope to stay competitive, so it gave them access to the Asia‐Pacific market and allowed the return to
Latin‐America. The alliance also helped to round up Renault's product portfolio, especially with Nissan's light commercial vehicles and large passenger cars. Furthermore Renault could gain from Nissan'sknow ‐ how in the manufacturing process. To sum it up the alliance showed an exceptional fit based on the partner's complementary strengths and formed the fourth largest automotive company in the world with an output of 4.9 million vehicles and 9.1% market share worldwide in 1999.
From the very beginning three overwhelming principles have accompanied the alliance: To share resources in order to realize economics of scale, to leverage the complementary strengthsin terms of products, markets and know ‐how in order to improve efficiencyand finally to preserver the separate brand principles in order themaintain a strong brand image and but contrasting corporate cultures to
These identities allowed to two companies with similar seize, appeal to a broader customer base. pursue a common strategyof profitablegrowth.
In detail the alliance was processed in two phases. In the firstphase in 1999 Nissan took an 36.8% equity stake in Nissan for EUR 4.4bn with the option for Nissan to take a stake in Renault