 Strategic Franco-Japanese partnership

 Aka corporate fairy tale

 One of the longest running cross border partnership
 Step forward for both companies to address the issues they were facing in late 90s
NISSAN RENAULT

 Japanese multinational automobile  Strongly present in European market

 Found in 1993,Yokohoma but exported only a small fraction
outside Europe
 Pioneer in Car manufacturing
 Failed merger with Volvo
 Well established in Japan,
North&South America,Europe  Found next possible partner,Nissan,
 Faced Financial difficulty and entered
most international car manufacturer
a period of recession at that time which was struggling
from financial problems
 By late 1990 company fell apart with
$20 billion debt
 Signed in March 27th ,1999
 Based on cross-shareholding agreement
 Agreement contributed $5 billon to Nissan
 Renault acquires 36.8% of Nissan’s equity of $643 billion(Increased to 44.4% in
2003)
 Nissan Acquired 15% of Renault shares
 Nissans stake in Renault was not given any voting right
 Preserve all potential synergies by combining the strengths of both companies
through a constructive approach to deliver Win-Win results
 Preserve each company’s autonomy ,respect own corporate and brand identities
 To draw the strengths of complementary expertise in sales and technology and to
reduce the cost & enhance performance
 To rank among the the top three general automakers in terms of:
1. Quality and value of products and services
2. Key technologies in engines
3. Operating profit
NISSAN RENAULT

 Reduce costs  Improve quality

 Reduce debt  Internatinalize
 3rd largest global automaker
 Global market share of 9%(by volume)
 Significant presence in major world market