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, RenaultNissan 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) Worlds 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 crossshareholding investments, each company acts in the financial interest of the otherwhile 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 Alliances 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 Ghosns 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)