1. Renault-Nissan Alliance
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Renault-Nissan Alliance
Type Strategic partnership
Industry Automotive
Founded 1999
Headquarters Amsterdam, Netherlands
Key people Carlos Ghosn(Chairman and CEO)
Products Cars and trucks
Website Renault-Nissan Alliance
Renault-Nissan Alliance is a strategic Franco-Japanese partnership between automobile
manufacturers Renault, based in Paris, France, and Nissan, based in Yokohama, Japan, which
together sell more than one in 10 cars worldwide.[1] The companies, which have been strategic
partners since 1999, have nearly 350,000 employees and control six major brands: Renault,
Nissan, Infiniti, Renault Samsung Motors, Dacia and Lada.[2] The car group sold 8.1 million cars
worldwide in 2012, behind Toyota, General Motors and Volkswagen for total volume.[3]
The strategic partnership between Renault and Nissan is not a merger or an acquisition. The two
companies are joined together through a cross-shareholding agreement. The structure was unique
in the auto industry during the 1990s consolidation trend and later served as a model for General
Motors and PSA Peugeot Citroën,[4] PSA Peugeot Citroën and Mitsubishi, and Volkswagen and
Suzuki,[5] though the later combination failed.[6] The Alliance itself has broadened its scope
substantially, forming additional partnerships with automakers including Germany's Daimler,
China's Dongfeng Motor, and Russia's AvtoVAZ.[7]
Contents
1 Corporate Structure and Strategy
2 History
3 Projects
o 3.1 Zero-emission vehicles
o 3.2 Daimler Strategic Cooperation
o 3.3 Brazil
o 3.4 Russia
o 3.5 India

2. o 3.6 China
o 3.7 Korea
o 3.8 Morocco
4 References
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 44.4 percent stake in Nissan, and Nissan holds a 15 percent stake in Renault (non voting, givng
Renault effective control. Although more companies have adopted such an arrangement, it
remains controversial. Some business journalists have speculated that the companies should be
joined in a conventional merger in order to make a "bold" move,[8](subscription required) while
other interested parties have said that the companies should separate.[9]
Carlos Ghosn is the Chairman and CEO of the Alliance. Ghosn is a Brazilian-Lebanese-French
businessman who is also Chairman and CEO of Nissan Motors and holds the same positions at
Renault.[10]Ghosn has compared the Renault-Nissan partnership to a marriage: "A couple does
not assume a converged, single identity when they get married. Instead, they retain their own
individuality and join to build a life together, united by shared interests and goals, each bringing
something different to the union. In business, regardless of the industry, the most successful and
enduring partnerships are those created with a respect for identity as the constant guiding
principle."[11]
Ghosn has consistently advocated[12] an evolutionary approach that results in increasing
integration and synergies for partners within the Alliance.[13] "You have to be careful that at the
end of the day, by trying to do more in the short-term you don't end up destroying what had been
delivering so much result on the mid-term and long-term," Ghosn was quoted as saying in March
2011 Reuters Special Report, in which he said conventional, top-down acquisitions in the auto
industry in the past decade have failed.[14] "It is not validated by any example in the car industry
that this works. Not one example. And saying something different is just rubbish."
The goal of the Alliance is to increase economies of scale for both Renault and Nissan without
forcing one company's identity to be consumed by the other's. The Alliance achieves scale and
speeds time to market by jointly developing engines, batteries and other key components.[15] For
instance, Nissan’s market share increases in Europe's competitive light commercial vehicle
segment have been partly a result of badging various Renault van models such as the Renault
Kangoo/Nissan Kubistar, Renault Master/Nissan Interstar, RenaultTrafic/Nissan Primastar.[16] In
addition, Renault builds nearly all of the diesel engines in Nissan cars sold in Europe. Nissan
uses these engines to accelerate sales throughout Europe, where it has already become the
number one Asian brand in many key markets.[17]
Collaboration between Renault and Nissan also focuses on capital-intensive research projects
such as sustainable, zero-emission transportation[18] and development of automobile

3. manufacturing in emerging markets such as Brazil, Russia and India.[19] The Alliance also
oversees purchasing for both companies, ensuring larger volume and thus better pricing with
suppliers.[20] Renault and Nissan have also consolidated logistics operations under the Alliance to
reduce costs. The companies claim that they generate more than €200 million per year by sharing
warehouses, containers, shipping crates, seagoing vessels and customs-related processing.[21] In
total, the Alliance reported more than €1.5 billion in synergies in 2010.[22]
The Alliance develops “best practices,” borrowing systems and controls from one company to
strengthen the other company where appropriate. The “Nissan Production Way” became the
cornerstone of the "Système de Production Renault" standard used by all Renault factories.
Renault reported productivity increasing by 15 percent due to the new system.[23]
History
The Renault-Nissan Alliance began March 27, 1999. At the time, the auto industry was in a
period of rapid consolidation. Numerous companies merged or were acquired in high-profile
deals, most notably Daimler’s acquisition of Chrysler in 1998 (which dissolved in 2007, when
the companies separated[24]).
At the time it was created, Renault bought 36.8 percent of Nissan's outstanding stock, and Nissan
vowed to buy into Renault when it was financially able. In 2001, after the company's turnaround
from near-bankruptcy, Nissan bought a 15 percent stake in Renault, which in turn increased its
stake in Nissan to 44.4 percent.[25]
In 2002, the Alliance created the Renault-Nissan BV (RNBV), a strategic management company
to oversee areas such as corporate governance between the two companies. Based in Amsterdam,
it is owned 50/50 by Renault and Nissan and provides a neutral location for the Alliance to
exchange ideas, build strategy and help leverage the maximum synergies between the two
companies.[26]
In 2006, the Alliance began exploratory talks with General Motors regarding the possibility of
creating an industrial alliance.[27] The talks were instigated by GM minority shareholder Kirk
Kerkorian. GM reportedly demanded payment of several billion dollars to engage in an alliance,
prompting Ghosn to call the terms "contrary to the spirit of an alliance." Discussions ended
without agreement in October 2006, when Ghosn said, "It's clear the two sides have completely
different appetites for an alliance."[28]
Key facts of the Renault-Nissan Alliance
Alliance signing on March 27, 1999

4. Nissan international website
Renault-Nissan Alliance: Facts & figures 2012
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)
Principles and objectives
The Alliance develops and implements a strategy of profitable growth. The objective is to
establish a powerful automotive group and develop synergies while conserving the corporate
culture and identity of each brand. The Alliance is built on values of trust and mutual respect.
The Alliance aims to rank among the top three general automakers in terms of:
quality and value of products and services in each region and market segment,
key technologies in engines, electronics and the environment,
operating profit.
Profits and results
Since the Alliance was established, Nissan has achieved a remarkable financial turnaround.
Renault has reinforced its foundations in terms of operating performance and has accelerated its
international development.
Combined expertise and technology sharing:

5. Nissan pilots the development of new gasoline engines while Renault focuses on diesel
engines,
Nissan actively participated in the development of the Renault group's first cross-over,
which was conceived and designed by Renault, and is manufactured by Renault Samsung
Motors in South Korea.
International development in emerging markets:
a partnership with the russian automaker AvtoVAZ.
The Renault-Nissan Alliance
＞
Please see our website for more information on the Renault-Nissan Alliance.
http://www.nissan-global.com/EN/COMPANY/PROFILE/ALLIANCE/RENAULT01/index.html
014
The Renault-Nissan Alliance
Nissan has greatly increased its global footprint and achieved dramatic economies of scale through
the Renault-Nissan Alliance, a unique and highly scalable strategic partnership founded in 1999.
In 2011, 8.03 million cars* were sold by the Renault-Nissan Alliance, amounting to a 10.7% global
share. We are marketing vehicles under the brands of Nissan, Infiniti, Renault, Renault Samsung
Motors and Dacia.
* This figure includes Lada sales (AvtoVAZ of Russia).
The Alliance’s Vision
Although it was initially considered a unique arrangement in the late 1990s, the Alliance quickly became a
model for similar partnerships in the auto industry. The Alliance itself has entered cooperative relationships with
Germany’s Daimler, China’s Dongfeng Motor Corp., Russia’s AvtoVAZ and others, and it continues to prove
itself
as the industry’s most enduring and successful partnership.
The Alliance is based on the rationale that substantial cross-shareholding investments compel each
company to act in the financial interest of the other, while maintaining individual brand identities and
independent corporate cultures. Renault currently has a 43.4% stake in Nissan, and Nissan holds a 15.0%
stake in Renault. The cross-shareholding arrangement requires mutual trust and respect, as well as a
transparent management system focused on speed, accountability and performance.
Alliance Objectives
The Alliance pursues a strategy of profitable growth with three objectives:

6. 1. To
be
recognized
by
customers
as
being
among
the
best
three
automotive
groups
in
the
quality
and
value
of
its
products
and
services
in
each
region
and
market
segment
2.
To
be
among
the
best
three
automotive
groups
in
key
technologies,
each
partner
being
a
leader
in
specific
domains
of
excellence
3.
To
consistently
generate
a
total
operating
profit

7. among
the
top
three
automotive
groups
in
the
world,
by
maintaining
a
high
operating
margin
and
steady
growth
The Alliance remains committed to developing synergies through such common organizations as the
Renault-Nissan Purchasing Organization (RNPO), joint working groups and shared platforms, components and
industrial facilities. In its second decade of existence, the Alliance also keenly focuses on maintaining its clear
lead in sustainable transportation.
Zero-Emission Leadership
The Alliance invested a total of approximately €4 billion in research, engineering, product development and
manufacturing to develop the first wave of zero-emission cars—electric vehicles (EVs). Unlike other carmakers,
the Alliance focused on development of a unique, purpose-built EV that could be mass-produced at affordable
prices for mainstream consumers. The first tangible result of the investment was the groundbreaking Nissan
LEAF, which went on sale in December 2010. In fiscal 2011, 23,000 units were sold, contributing to a
cumulative total of 30,000 units since launch. This makes Nissan LEAF the best-selling EV globally.
Additionally,
under the Renault brand, the Kangoo Z.E., the Fluence Z.E. and the Twizzy are currently being sold. We plan
to
launch eight models of EVs across the Alliance by 2014.
The Alliance is also working hard on the production of batteries for EVs. Production in Japan started in
2010. We also plan to use batteries produced in the United Kingdom, the United States and France. By making
maximum use of the expertise we have as an automobile manufacturer, we develop and mass-produce high-
quality EV batteries, making us very competitive in the EV space.
This advanced technology and total supply chain control means that the Renault-Nissan Alliance holds an
unmatched position in the global automotive industry. The merits of holding this lead over other companies
when entering new markets are immeasurable. This frontrunner advantage in EV development does more than
015
The Renault-Nissan Alliance
allow Nissan and Renault to raise awareness of their brands among consumers; it also lets us review real-
world
data. Both companies aim to sell a cumulative total of 1.5 million electric vehicles by 2016, leading the way
in the automotive industry. Meanwhile, we will continue to work on fuel-cell electric vehicles and other future
strategies in advanced zero-emission technology.
Strategic Cooperation with Daimler
Since the Alliance’s strategic cooperation with Daimler AG was announced in April 2010, the relationship
between both groups has gone from strength to strength. In the second half of 2012, we plan to introduce to
market a new model in the entry-level light commercial vehicle range. The companies will jointly develop car
bodies for the next-generation Smart and the Renault Twingo. These models will be brought to market in the
first quarter of 2014. The 3-cylinder gasoline engine installed in the Twingo will be provided for Daimler’s Smart
model. A 4-cylinder diesel engine will go into the new light commercial vehicle to be jointly developed by both
groups, as well as into Mercedez Benz’s next-generation premium compact cars. Furthermore, from 2014 we
will begin production of 4-cylinder gasoline engines for Mercedez Benz and Infiniti models at Nissan’s plant in
Decherd, Tennessee. The production capacity is expected to reach 250,000 engines a year.

8. Cooperation with Mitsubishi Motors
In September 2011, Nissan and Mitsubishi Motors agreed to extend the scope of their OEM supply agreements
in the Japanese market. The latest agreements are part of the core agreement signed in December 2010 to
expand cooperation between the two companies. In the summer of 2012, Nissan will start supplying the Fuga,
a luxury sedan, to Mitsubishi Motors. Within fiscal 2012, Mitsubishi Motors will start supplying the Minicab
MiEV, a light commercial electric vehicle, to Nissan. These new OEM projects continue from the previous
supply
of Nissan’s NV200 Vanette compact van to Mitsubishi Motors. Along with the establishment of NMKV Co., a
joint venture for the minicar business, these initiatives are intended to strengthen the competitiveness of both
companies in Japan.
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 13 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 Alliance
Created in 1999, the Renault-Nissan Alliance is a unique partnership of five brands that sold 8
million units in 2011 and more than one in 10 cars worldwide. Renault and Nissan employ nearly

9. 350,000 people in almost 200 countries worldwide. Renault and Nissan are run as separate
companies but united through cross-shareholding, a shared focus on results-driven synergies,
cross-cultural management and respect for individual brand and corporate identities. The
Alliance has a flexible business platform and has expanded to include collaborations with
Germany's Daimler, China's Dong Feng and Russia's AvtoVAZ, among others. Renault and
Nissan are the only automakers mass-producing and selling zero-emission vehicles, including the
Nissan LEAF and Renault Kangoo ZE van, which are both 100% electric. The Alliance is
helping to build a zero-emission infrastructure around the world and has agreements with over
100 cities, states and countries that are working to establish the infrastructure and market
conditions that will help make electric vehicles affordable and convenient.
www.alliance-renault-nissan.com
Carlos Ghosn on Preserving the Renault-
Nissan Alliance
Posted on December 08, 2011
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Nissan Motor Co Ltd
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10. When I came to Japan in 1999 from Renault, my job was to revive Nissan (NSANY). I was the
only chief executive officer managing two companies on two continents, and not one of them
was a slave to the other. Some people would say, “Oh, you’re not doing enough for Nissan.”
Others would say I wasn’t doing enough for Renault. Nobody wants to share their CEO.
It became clear that [Nissan] wanted results, but it didn’t want change. Every idea I had was
resisted. The Japanese people are very polite, so they wouldn’t directly oppose any decision of
mine; instead, they would propose something else to avoid it.
I knew that if I wanted to have any chance to be successful, I had to change all of it at once. I
played to the sense of commitment that the Japanese have. I made it clear that I was personally
committed to Nissan’s revival. I had to close down plants in a country where the plant is a sacred
place. I had to reduce head count in a culture that expects lifetime employment. I had to
challenge seniority, when everything was based on the oldest guy getting the job. Every single
thing that was needed for Nissan went against their values. It was a complete clash with the
culture.
I had all the press against me: How is a Brazilian-born French citizen of Lebanese origin who
doesn’t speak one word of Japanese and comes from little Renault going to change the mighty
Nissan? You know what really helped me? I didn’t understand what they were saying about me
in Japan.
I was always very even in my care and attention. Now I’m spending a bit more time in Renault
because there is a performance differential. Take the image of the father: He needs to be more
present for the child who needs him the most.
If I left one job or the other, both companies would know the alliance wouldn’t be the same.
Either you’re Japanese, or you’re French. The only person who can be legitimate from both sides
is somebody who is French and has contributed to save Nissan, or somebody who is Japanese
who has contributed to save Renault. I have the privilege to see things from both sides. — As
told to Diane Brady