figures. One of the ways to overcome it was to establish a global alliance to survive through increasedsales. Nissan found a joint venture with Renault. Soon Nissan felt that it could learn about Renault’scost management and customer relations by alliance. Daimler-Chrysler also was in the run to go in foralliance with Nissan, given the size and prestige of Daimler-Chrysler, it could easily pay off all of Nissan’s debts, increase sales – in short remove all of Nissan’s problems. However, in agreeing to beacquired by Daimler-Chrysler, Nissan would lose its independence. On the other hand the deal withRenault would allow Nissan to have an independent existence and still have access to processes toaddress Nissan’s problems. Finally Nissan signed the deal with Renault.
History of Nissan:
Nissan was established in 1933 by Yoshisuke Aikawa to manufacture and sell small Datsun cars andauto parts.In 1935, the first car was rolled out from the Yokohama plant and export of vehicles to Australia wasalso started the same year. In 1936, as World War II approached, the production of cars was cut back and the production of military trucks given more importance. This was a change in product portfolio tomatch the shift in needs.After the war, many of Nissans former auto dealers moved over to Toyota, leaving Nissan a depletedcompany.