On March 27th, 1999, an alliance was signed between Nissan and Renault after 10 months of discussions between the two automobile firms. At the turning point of the twenty first century, the automobile market is in an increasingly competing environment with heavier investments to make and more sophisticated and surer cars to be introduced along with more constraining legislations in particular to limit air pollution.
But an alliance between two countries of different continents seems especially useful to compensate for the jolts of the economic situation variable according to the continents, it is then important for a firm such as Renault to have a world cover. What to think of the choice of Nissan as a like partner?
The appropriateness of this choice will be further considered by analyzing the strengths and weaknesses of each company along with their contribution to the alliance, and finally how their compatibility and how they complement each other.
French manufacturers seem to want to turn to emerging markets, which are engines of growth. The regions concerned are specifically Asia, Central Europe and Latin America. But Asia does not seem to be the best choice, according to the EIU (Economist Intelligence Unit) which provides a significant decline in vehicle sales but a smaller decline in production due to export.
Renault is a predominantly European manufacturer that seems to have completely abandoned the market in North America when their was a little more development in South America and in Eastern Europe where the company developed close ties with the Romanian Dacia Corporation.
Asia is a relatively untapped territory by Renault but the company has not given up. In late 1997, the CEO made his first trip to the region and found that the surplus production capacity and distribution networks are underemployed making Asia a possible field.
After an unsuccessful research in Korea, Renault's CEO turned his attention to Japan and dismissed Suzuki, Subaru and Mitsubishi as well. He then turned his attention towards Nissan who was also looking for a partner.
Tags: Renault – company and history, Nissan – company and history, Renault and Nissan partnership
[...] The choice of Nissan as a partner of Renault Introduction On 27 March 1999 an alliance was signed between Nissan and Renault after 10 months of discussions between the two car manufacturers. We know that Renault was looking for a partner in Asia since late 1997 thus Nissan was chosen, so let's explore this choice of partner. We will first quickly analyze the context in which Renault wanted to ally with an Asian group and why it chose Nissan. Then we will examine more fully the relevance of this choice by analyzing the strengths and weaknesses of each and their contribution to the alliance then the complementarities and finally the compatibility. [...]
[...] There is still an exception to this rule, namely Mercosur which is more or less abandoned by the two firms. Industrial location There is a new balance that has generated geographically when looking more closely at the industrial complexity of the two groups. We wrote again that areas are underserved by Renault (North America and Central America Amer) and not by Nissan, similarly in South America, where Nissan is not implemented and is more acclaimed by Renault. Similarly, for regions in which both firms have established themselves commercially, they are generally of course not in the same countries. [...]
[...] He became interested closer to Nissan, he made contact with its director and then realized that Nissan was also looking for a partner. Nissan was a significant manufacturer, this was the sixth building of world in 1998 with 2,584,000 vehicles produced of which only 386,000 in the European Union. It is a manufacturer present on all continents both in sales as its industrial gold Renault, which is more focused on Europe, just trying to establish themselves on every continent. II-Contribution to The objectives of the alliance The objectives of the alliance are to form a binational, based on respect, mutual understanding and maintaining the identity between the two taken. [...]
[...] Finally the conversation is interrupted by white Asians what is considered a failure of communication among us who are more likely to have a conversation that overlaps. A final important difference is that the Japanese do not consider anything like a detail, everything is important for them, so they can spend much time talking about something that we consider the details. More before making a decision everyone speaks informally, in the training runs from one individual to another and when everyone is aware and has accepted the idea then they make a meeting to give the formal decision while everyone already knows. [...]
[...] Rapid change Beyond the complementarities of the two groups and the vast potential for synergies, the success of the Alliance depended first of Nissan's turnaround. The financial and managerial resources provided by Renault gave the decisive impulse to straighten the market. The vigorous action plan, Nissan has made very rapid results. The Company has returned to profitability in 2001. The joint work within the Alliance grew through a set of strategic cooperation in all fields: technical, industrial, commercial, IT, purchasing. [...]
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