The Renault-Nissan Alliance

Paper Summary:

This document discusses the case study entitled 'The Renault-Nissan Alliance' published by the Harvard Business School. The case study discusses the alliance between Renault and Nissan, first as an investment by Renault in Nissan and subsequently a full 50/50 joint venture. Although there were certain operational and engineering difficulties the joint venture has proven to be an astounding success due, largely, to Carlos Ghosn's leadership.

From the Paper:

"Renault, long one of Europe's largest automotive manufactures, invested heavily in Nissan in 1999. These figures represented an approximate $5.4b amounted to a 36.8% stake in the company for Renault and represented a substantial risk (Yoshino & Fagan, 2003, p.6). For Renault the move was as strategic one to gain global scale while for Nissan the investment amounted to a vital life-line. In 2002, the Renault minority ownership in Nissan was upgraded to a joint venture complete with shared platforms, technologies, and synergistic markets (Yoshino & Fagan, 2003). The new full-fledged alliance was termed Renault-Nissan BV and it brought out the best from each company and ultimately fashioned a formidable competitor. "

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