Abstract

Renault is a France-based automaker, with a presence in all major automobile markets around the world, barring the US. Nissan is the third largest Japanese automobile company, after Toyota and Honda. In the late 1990s, Nissan was debt-ridden and making huge losses. In 1999, Renault initially acquired 36.8% shares of Nissan and entered into a strategic alliance with the Japanese company. The Renault-Nissan Alliance was unique in the sense that Renault allowed Nissan to maintain a separate identity while developing synergies. The two companies developed a paradigm-altering model of partnership that allowed them not only to cut costs and become more efficient but also to become more nimble and innovative. The Alliance involved sharing several systems, plants, platforms, and best practices. The case discusses the features of the Renault-Nissan Alliance and some of the challenges that the Alliance faced. In 2012-13, with more and more economies facing a slowdown, it seemed like the Alliance would face tougher challenges in the near-term. Also, with CEO Carlos Ghosn expected to step down in 2014, it looked like Renault and Nissan would appoint separate CEOs. According to analysts, this could have an impact on the success of the Alliance.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Examine the reasons for Nissan and Renault entering into an alliance
• Analyze the efforts made by Renault-Nissan Alliance to take advantage of synergies
• Appreciate the benefits that the Alliance provided to the two partners
• Examine some challenges that the Alliance may face in the immediate future and suggest solutions

Keywords

Integration, Strategic Alliance, Strategy Implementation, Leadership, Nissan Revival Plan, Alliance Integrated Manufacturing System, Alliance Quality Charter, Steering Committees, Cross-Company Teams, Functional Task Team, The Nissan Production Way, Synergies, Cost advantages, Technology sharing, Culture, Renault, Nissan