THE ALLIANCE

MBA Institute

Charlotte Lagache EB2

14/10/2011

TABLE OF CONTENTS

Introduction

I-Presentation of the two firms

II-The Alliance

III-The goals of the Alliance

IV-Financial point of view

INTRODUCTION

Renault-Nissan is the first industrial partnership between Japan and France. These society was born to create sygerngies between the two firms; thanks to that they could performed themselves.

That was possible thanks to the two chairmen of Renault and Nissan: Mr Schweitzer and Mr Hanawa who are expected different performed way for the two compagnies.

I-PRESENTATION OF THE TWO FIRMS

Renault Nissan

Renault is the oldest automaker in France.

In 2010, the turnover of the firm was 38,971 billion €.

Their main sells are made in foreigners countries, that was not the case before the alliance.

Nissan is the second biggest automaker in Japan.

In 2009, the turover of Nissan was about 58,550 billion €.

The exportations of Nissan are now more than 75%.

II-THE ALLIANCE

The Alliance was conclude on march 1999. Renault has invested at the beginning

$5.4billion in Nissan for 36.8% of the compagny, and Nissan has invested €2.2billion for 15% of Renault compagny.

In 2001, the compagny sold a combined of 5 million automobiles.

The alliance share of the world market came to more than 9.2%, posistionning the alliance among the world’s top five automaker.

In 2010, they are now in the top three.

WHY THE ALLIANCE?

Just before the alliance, Renault was looking for a potential partner to create a balance in his sells. For Renault, his main market in in western Europe so they wish increase their sells in USA, and also in Asia.

Nissan had big financial difficulties and does not make profit anymore; they need deep changes, and a good partnership could help them in this way

THEN THE DEAL WAS MADE BETWEEN THE TWO COMPAGNIESTHIS MARCH OF 1999

COOPERATIONS AND SYNERGIES

The joint-venture RNPO Engineering Research in new technologies Production merged (the goal is to build

the cars of the two companies in the same 10 platforms)

Business cooperation Taking care of the good quality product Sharing of the good practices and the

best way to work in common

STRUCTUREDirectory desk

(responsable of the two societies)

Coordination desk

Steering comitees

Cross Compagny

Teams

Functional Task Teams

Task Teams (for a

particular question)

THE MEANING OF THE DIFFERENT GROUPS The Steering Committees: they are

created the principals purposes which will be presented to the directory desk

The CCTs: They prepare each month a report on their progress, they elaboate different way for futures synergies, new plan of purchasing, etc.

The FTT: They bring their valuations about the standart products, management, quality product, etc.

III-THE GOALS OF THE ALLIANCE

Increase their profit and performances To get a competitive level with the two

world’s giant automaker before Renault-Nissan which is Toyota and General Motors.

Improve their quality Improve their attractive level in

products and services Improve their technology Keep the culture and identity of the

two brands.

IV-FINANCIAL POINT OF VIEW Today, development of the synergies are not

optional anymore but obligatory. With the actual conjuncture it is good to get a

strengthen partnership. The Alliance constitutes a unique competitive

advantage in the world’s crisis sectors. Thanks to a multicultural management and a

shared experience, the Alliance is formed now of a welded team constituted from six Nissan collaborators, and five Renault collaborators.

The research group who make part of the alliance will permit to decrease the costs in about 115 million euro thanks to this common development.

THANKS FOR ATTENTION

We can wish for the future a well improving of their synergies, and the Alliance stay one the best world’s competitor.

SOURCES

http://www.info-financiere.fr/upload/CNS/2009/05/FCCNS019934_20090529.pdfhttp:// www.renault.comhttp://fr.wikipedia.org/wiki/Renault-Nissan