Case ID: 303023     Solution ID: 32001

Renault Nissan Alliance Case Solution

Abstract

On Wednesday, May 29, 2002, the governing body of Renault-Nissan BV (RNBV) met for the first time to examine the condition of the organization together between Renault SA and Nissan Motors-two of the world's largest automakers. RNBV was a 50/50 joint wander organization built up in March of that year to manage the strategy of the partnership and all exercises attempted mutually by Renault and Nissan. The new organization would "direct union strategy and regulate normal exercises on a worldwide level, while regarding the identity and culture of every organization and not meddling in operations." Executives at both organizations trusted much had been proficient in the initial three years of the collusion. Nissan, under Carlos Ghosn's authority, had enhanced its accounts drastically and was quickly reemerging as a noteworthy player in the worldwide automobile industry. In addition, the union accomplices were in accordance with their underlying figure of $3.3 billion in cost funds and collaborations guaranteed by 2002, as per their inside reporting. As the board arranged to meet, Louis Schweitzer and Ghosn trusted the organization together confronted troublesome difficulties ahead. To what extent would the two organizations have the capacity to acknowledge further savings and synergies, especially in the regions of assembling and extra deals? In what manner should the RNBV board address issues that had surfaced as representatives of the two firms cooperated crosswise over divergent corporate and national societies, capacities, and topographies? At last, would the two firms have the capacity to strike a harmony between developing their partnership while "regarding the identity and culture of each organization and not meddling in operations?"


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