Renault-Nissan Alliance structure: Optimizing the global allocation of resources Renault-Nissan BV 50% 50% 100% Strategic Management Strategic Management 19 Cross Company Teams (CCTs) Joint companies eg: RNPO - RNIS 4 Functional Task Teams (FTTs) 44.4% 15% RENAULT NISSAN
The 7 management guidelines for the revival of Nissan
Focus on profit and organize the decision process around a set of simple financial yardsticks.
Link compensation and promotion to performance.
Concentrate on the core business.
Seek new opportunities for growth.
Transform a collection of regional fiefdoms into a global group.
Associate public commitments – empowerment –transparency and accountability.
Build a budget combining project – global function and regional approaches to stretch the performance through transversality.
The performance drivers of the Alliance
Exchange of best practices
Common IS/IT infrastructures
Complementarities in the international development of Renault and Nissan
Sharing of resources for new R&D development
Renault-Nissan Alliance : win-win
Acceleration of international deployment
Economies of scale (purchasing, common engines & platforms, co-development)
Sharing of best practices (quality, industrial & engineering)
Optimization of capacity utilization
Contribution to net result & dividend flow
Cooperation on leading technologies
Advantages drawn by Renault Advantages drawn by Nissan
Initial financial input from Renault
New performance orientated culture
Cost and vehicle project management
Re-invention of a « product policy »
Turn-around in Europe
Development of captive finance business
Worldwide production facilities : Complementarities within the Alliance India China Indonesia Iran Japan Taiwan Malaysia Uruguay Colombia Morocco Thailand Russia Mexico United States South Africa Spain United Kingdom Argentina Brazil Slovenia Chile Turkey France Korea Romania Renault Renault Samsung Motor Nissan Dacia Renault Renault Samsung Motor Nissan Dacia Renault Renault Samsung Motor Nissan Dacia Renault Renault Samsung Motor Nissan Dacia
A positive impact of Nissan's results in Renault's accounts Dividends received from Nissan Nissan contribution to Renault's results 2000-2004: 894 million euros of dividends received 2004 2003 2002 2001 2000 50 0 100 150 200 250 300 350 400 0 500 1,000 1,500 2,000 In millions of euros
The objectives of the Alliance vision - destination
For the quality and value of its products and services, in each region and market segment,
In key technologies,
In terms of operating profit thanks to its strategy of profitable growth.
To rank among the top three automotive groups in the world: