The Renault-Nissan Alliance, established in

March 1999, is the first industrial and

commercial partnership of its kind
involving a French and a Japanese
company. A real success.
 The Alliance
• Signed on March 27, 1999, the Renault-Nissan Alliance has
built a unique business model that has created significant
value for both companies. For over 14 years, employees at
Renault and Nissan have worked as partners with an
attitude of mutual respect and company pride while
keeping brands and corporate identities
• Renault-Nissan B.V.*, the common strategic management
structure of the Renault-Nissan group, was founded on
March 28, 2002. Incorporated under Dutch law, Renault-
Nissan B.V. is equally owned by Renault and Nissan.
Renault-Nissan B.V. is the registered office of the Alliance
Board, which meets regularly in Paris and Tokyo.
• *B.V. (Besloten vennootschap) is a closed limited liability
company under Dutch law.
Structure of the Alliance
 Key facts of the Renault-Nissan
Alliance
• 2 global companies linked by cross-shareholdings
• Combined vehicle sales have increased from 4.9
million units in 1999 to more than 8.03 million
units in 2011 (including sales AvtoVAZ)
• World’s third-largest automotive groupe (2011)
• Significant presence in major world markets
(United States, Europe, Japan, China, India,
Russia)
Renault-Nissan Alliance Structure:
optimizing the global allocation of
resources
 Corporate Structure and Strategy
• The Alliance is a strategic partnership based on
the rationale that, due to substantial cross-
shareholding investments, each company acts in
the financial interest of the other—while
maintaining individual brand identities and
independent corporate cultures.
• Renault currently has a 43.4 percent stake in
Nissan, and Nissan holds a 15 percent stake in
Renault. Each company has a direct interest in the
results of its partner.
 Renault-Nissan BV organization
• Renault-Nissan BV was created in 2002. It is a strategic
management company under Dutch law jointly and equally
owned by the two partners. Renault-Nissan BV was created to
establish a common strategy and develop synergies within the
Alliance. It hosts the Alliance Board of Directors that steers
the Alliance’s strategic objectives and coordinates common
Renault-Nissan activities.
• Renault-Nissan BV hosts the Alliance Board, which steers the
strategic objectives of the Alliance and coordinates the joint
activities of Renault and Nissan. The Alliance Board is
responsible for Alliance strategy in the medium and long term,
and coordinates its work at international level. The decisions
made by Board members are ratified at meetings.
• Renault and Nissan run their businesses through their
respective Executive Committees, which report to their Boards
of Directors but remain in charge of day-to-day management.
• Renault-Nissan BV manages two joint
companies:
1) RNPO (Renault Nissan Purchasing
Organization), tasked with optimizing
purchasing strategy,
2) RNIS (Renault-Nissan Information Services),
tasked with optimizing Alliance information
systems.
 MAIN SOURCE OF SYNERGIES:
• Renault and Nissan pool their expertise and cooperate on purchasing,
engineering, production and distribution. The two groups also exchange
best practices to improve productivity.

 The two main sources of synergies, in terms of financial impact, are in

purchasing (since 2009, RNPO covers 100% of Renault and Nissan
purchases) and pooling parts, platforms (basic structure of a vehicle)
and powertrain components.

 Synergies are also being developed in other areas including

logistics, marketing, support functions, information systems. Each
partner in the Alliance brings its own expertise to strengthen common
or separate projects. For example, Nissan contributes its expertise in
SUVs, while Renault shares its expertise in diesel engines.

 Synergies are also generated in terms of international development

strategies. For example: Renault and Nissan rely on each other to
increase share in new markets when one of the two Groups is already
present. It is the case in China for instance.
Carlos Ghosn’s strategic leadership
• Achievement-Oriented
• Participative
• Supportive
• Directive
• Walk around in entire company
• Met every employee and shaking hands
• Discussions for new ideas
• Address issues of lower & middle management
to top level management
• Take recommendations & opinions of the
employees.
 Carlos Ghosn Achievements
• Nissan began to operate profit under his
leadership
• Resolved communication obstacles
• Designing CFT (cross-functional teams)
• Successfully redesigning Performance
Evaluation and Employee advancement.
 THANK YOU!!!
GROUP MEMBERS- SEC-D

ABHI SHAH (20)

DHWANI DESAI (29)
AVANI DALAL (45)
ANERI GANDHI (48)