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BEGINNING OF NISSAN
• Masujiro Hashimoto founded
the Kwaishinsha Motor Car Works in
1911. In 1914, the company
produced its first car, called DAT
FOUNDING NISSAN MOTOR
• In 1934, Yoshisuke Aikawa separated the expanded
automobile parts division of Tobata Casting and
incorporated it as a new subsidiary, which he
named Nissan Motor Co., Ltd.
• In 1935, construction of its Yokohama plant was
completed. 44 Datsuns were shipped to Asia, Central
and South America.
FOREIGN EXPANSION
• They first showed cars at the 1958 Los Angeles Auto Show
• In 1960s, Nissan continued to improve their sedans with
the latest technological advancements and chic
Italianate styling
• By 1970, Nissan had become one of the world's largest exporters of automobiles
OIL CRISIS
• In the wake of the 1973 oil crisis, consumers worldwide
(especially in the lucrative U.S. market) began turning to
high-quality small economy cars. To meet the growing
demand, the company built new factories in Mexico,
Australia, New Zealand, Taiwan and South Africa.
RENAULT-NISSAN ALLIANCE
• In 1999, with Nissan facing severe financial difficulties, Nissan
entered an alliance with Renault of France.
THE SITUATION
• Nissans problems before the alliance
• Company was falling apart
• $ 23 billion euros in debt
• Inability to establish a purchasing policy or a system of relations with suppliers
• They were in case of loosing their identity
• Increasing debt
• Declining market share
• High cost of production
• Japanese recession
THE SITUATION
• The reasons of the problems
• Recession in early 90’s in Japan
• There was complacency and a lack of urgency in the culture
• There was no cross-functional and cross-regional communication
• The design of the cars was out of touch with the market
• A high degree of bureaucracy
• There was an emphasis on engineering culture rather than managerial culture and promotions
• Sticking in the Keiretsu model
CARLOS GHOSN
• Born on 9th March, 1954, in Porto Bello, Brazil
• Joined Renault in 1996 as Executive Vice President of Advanced R&D, Manufacturing and Purchasing
• Appointed as COO of Renault in 1998
• In June 2001, Carlos Ghosn was named Chief Executive Officer of Nissan.
• In May 2005, Ghosn was named President of Renault. He was appointed President and CEO of Renault on 6 May 2009.
• Under CEO Ghosn's "Nissan Revival Plan" (NRP), the company reached to record profits and a dramatic revitalization of its models
• He is also a director of Alcoa and AvtoVAZ.
SWOT – EXTERNAL ANALYSIS
• Automakers face legislation increasingly restrictively on the fuel consumption
• Market has become hyper-competitive
• Heavy investment in R&D
• Strategy of cost becomes the major issue
SWOT – INTERNAL ANALYSIS
Nissan’s weaknesses are only due to a bad optimization
from their resources and skills
THE GOALS
• Combine and utilize the resources to achieve
economies of scale
• Using each other’s complementary strengths to
improve the efficiency
• Provide distinct brand name
PHASES OF AGREEMENT
First phase
• In 1999, Renault took a
36,8% stake in Nissan for
about 4.4 euros.
• 3 executive directors was
from Renault joined Nissan,
and Carlos Ghosn was
appointed as COO.
Second phase
• On May 2002, Nissan took
15% stake in Renault, but
they didn’t have any voting rights.
• Renault-Nissan B.V. was
formed.
CARLOS GHOSN STRATEGY
• The biggest challenge- cultural differences between
companies
• Individual approach
• Closed 5 manufacturing factories
• Layoff 20000 employees
• Reduce Nissan’s own purchase costs and turn it global suppliers
• Making English as a common “work language”
• “Nissan Revival Plan”
CARLOS GHOSN
• “You have to be careful that at the end of the day, by trying
to do more in the short-term you don't end up destroying
what had been delivering so much result on the mid-term
and long-term”
(Carlos Ghosn)