Renault nissan presentation

A New Beginning………..

“It is said that need is the basic motivation for man to invent…..”

Yes…... This is the same need that made the 2 companies to come closer by eradicating all their barriers and join hands for a better tomorrow.

By 1999, the environment of car manufacturers had became very competitive. Globalization in the market Saturation of certain geographical areas for

production and distribution. Cut throat competition for opportunities for

survival.

Renault

Nissan

Founded 1898

Cooperation with Volvo 1990

Financial Distress1990

Alliance with Renault1999

Alliance with Nissan1999

Founded 1911

Established in 1933 Was a pioneer in the manufacturing of

automobiles Products: Automobiles, Outboard motors,

Forklift Trucks Main markets: Japan, United States, Europe, Revenue: 80.92 billion USD Profit: 460 million USD ( 2009)

Is a French automaker Main products: Automobiles, commercial

vehicles, financing Revenue: 38.97 billion USD Profit: 3.420 billion USD (2010)

Company was falling apart. Huge debts of $20 billion.But the root causes which led to the

above problems were; Recession in early 90’s in Japan No cross - functional & cross - regional

communication. Outdated style & design for its cars. High degree of bureaucracy.

Renault comparatively had very less problems….. Their main source of revenue was

concentrated only on Small & Medium Cars in Europe…..

Its 85% of sales was in Western Europe……

The alliance between Renault and Nissan was signed on 27th of

March, 1999

The Renault-Nissan Alliance is the third largest global automaker

Includes: Dacia, Infiniti, Nissan, Renault and Renault Samsung

Sold 7.2 million vehicles in 2010

2 global companies linked by cross-shareholdings

Significant presence in major world markets (United States,

Europe, Japan, China, India, Russia)

Renault Nissan

Respective objectives

Improving qualityInternationalize

Reduce CostsReduce Debt

Common objectives

Economy of scaleTechnological Know-How

Leader for the quality and attractiveness of products & services

Quality between the relationships among the managers &

engineers of Renault and Nissan.

Rich Business experience.

Technical skills.

Core Values – Balanced relations between 2 companies and

the development of strong identities for each of the brands.

Capital contributions and equity participations

Third largest global automaker (based on sales for the year 2008)

Global market share of 9% (by volume) Significant presence in major world markets

(United States, Europe, Japan, China, India, Russia)

Combined expertise and technology sharing• Nissan focuses the development of new gasoline

engines while Renault focuses on diesel engines• International development in emerging

markets• A partnership announced with Bajaj, an Indian

manufacturer, to develop an ultra-low-cost vehicle by 2010

• A partnership with the Russian automaker AvtoVAZ