Renault-Nissan Alliance Harvard Case Solution & Analysis

On Wednesday, May 29, 2002, the Board of Directors of the Renault-Nissan BV (RNBV) met for the first time to discuss the state of the alliance between Renault SA and Nissan Motors two of the largest car manufacturers in the world. RNBV was 50/50 joint venture was established in March of the same year to oversee the strategy of the alliance and all the events held in conjunction with Renault and Nissan. The new company will "steer alliance strategy and control of joint activities at the global level, while respecting the identity and culture of each company and not to interfere with the operation." Executives from both companies believed much had been achieved in the first three years of membership. Nissan under Carlos Ghosn, in its finances improved dramatically and quickly reemerging as a major player in the global automotive industry. In addition, the alliance partners were in line with its original forecast of $ 3.3 billion in cost savings and synergies promised by 2002, according to their internal reports. In the board is ready to meet with Louis Schweitzer and Ghosn said that the alliance is facing challenges. The extent to which the two companies will be able to realize additional savings and cooperation, especially in the field of production and additional sales? As RNBV board address the issues that have surfaced as employees of two companies worked together disparate corporate and national cultures, functions and regions? Ultimately, the two firms would be able to find a balance between deepening their union as "respect for the identity and culture of each company and not to interfere in the operation?" "Hide
by Mikhail Y. Yoshino, Perry L. Fagan Source: HBS Premier Case Collection 26 pages. Publication Date: 09 May 2003. Prod. #: 303023-PDF-ENG

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