Renault

Overview

The Renault-Nissan Alliance was established in March 1999. It is the first industrial and commercial partnership consisting of a French and a Japanese company. It is the longest lasting global partnership in the car industry. The goal of the Renault-Nissan Alliance is to grow both companies while making a profit. The objective is to “establish a powerful automotive group and develop synergies while conserving the corporate culture and identity of each brand” (Renault.com). The Alliance focuses on values of trust and mutual respect and through these values, it aims to rank among the top three general automakers in terms of the quality and value of products and services that it provides in each region and market segment they enter. It plans on using key technology in engines, electronics and the environment, and for the Alliances to make an operating profit.

Structure

The structure of the Alliance is called a cross shareholding model. This means that both of the partners have an equal stake in the business. As a result, the two companies are more likely to make decisions based on mutual self interest, as well as seeking “win-win” strategies so that both companies can benefit. This structure was formed on March 28, 2002, therefore resulting in Renault-Nissan BV. Renault-Nissan BV is a company, which is incorporated under Dutch law and owned equally by both Renault and Nissan. Renault-Nissan BV is in charge of the strategic management of the Alliance.

Alliance Board

The Renualt-Nissan BV also holds an Alliance Board. It is the common governance body of the Alliance and is headquartered in Amsterdam. It has 50% share holdings by both companies. There are three Renault senior executives and three Nissan senior executives. They are supported by the full Executive Committee of both Nissan and Renault. The Board is headed by Carlos Ghosn, the Renault-Nissan Alliance Chairman and CEO. The board’s goal is to...