The Renault-Nissan Alliance Case Solution

This case is about Strategy
published: 28 Oct 2016

Abstract:

In 1998, Renault proposed an alliance with Nissan, the Japanese car production giant which was in monetary difficulty. Whereas Nissan benefited from much better access to the United States market and from offering high end designs under the Infiniti brand name (which later on drew in Daimler to sign up with the alliance), Renault completed primarily in the mid-size and little cars and truck sections in Europe, a busy, competitive sector with low margins. In 2015, the French federal government looked for to combine its control over Renault, and by extension Nissan, which was 43.4 % owned by Renault.

 

Pedagogical Goals:

Nissan’s exceptional success raises the concern of why ownership and governance structures still presume Renault predominates. His succession stays uncertain, and a duration of turbulence sets in as the federal government votes versus a proposed pay boost for the Renault chief. By 2015 Renault’s practicality rests on dividends from Nissan and its “Entry” item line and brand name.

In 1998, Renault offered an alliance with Nissan, the Japanese car production giant which was in monetary difficulty. Consequently, a Renault group led by Carlos Ghosn assisted Nissan attain one of the most amazing turn-arounds in current history. Whereas Nissan benefited from much better access to the United States market and from offering high end designs under the Infiniti brand name (which later on drew in Daimler to sign up with the alliance), Renault contended primarily in the mid-size and little automobile sections in Europe, a busy, competitive section with low margins. In 2015, the French federal government looked for to combine its control over Renault, and by extension Nissan, which was 43.4 % owned by Renault.

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