...RELEASE January 17, 2012 RECORD SALES FOR THE RENAULT GROUP IN 2011 The Renault group sold 2,722,062 vehicles worldwide, an increase of 94,697 (+3.6%). Sales outside Europe rose 19.2% and now account for 43% of the total. 2011 highlights • • Strong growth was driven by sales outside Europe and by the Renault brand (+6.8%). In Europe, Renault remained the No.2 brand for passenger cars (PC) and light commercial vehicles (LCV), taking 8.6% of the market. The Renault group led the LCV market for the fourteenth year running, with a 15.6% share of the market. Renault laid the foundations for the future by launching a range of Zero Emission (Z.E.) vehicles at year’s end, including Fluence Z.E. and Kangoo Z.E. Recently named International Van of the Year 2012, Renault’s electric van was selected by 19 major French companies (winning a contract to supply 15,600 vehicles). • Commenting on these results, Jérôme Stoll, Executive Vice President, Sales and Marketing & Light Commercial Vehicles, Chairman of Europe Region, said: “In 2011, the Renault group beat its own record, selling 2.7 million vehicles, and pursued its global expansion, generating 43% of its sales outside Europe. Despite mixed results in Europe, Renault remains the market’s No.2 brand and was the LCV leader for the fourteenth year in a row. Last year also ushered in the era of the affordable electric vehicle, with the launches of Renault Fluence Z.E. and Renault Kangoo Z.E.”. Corporate Communications 68 quai...
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...The Renault and Nissan alliance Renault, the oldest automaker in France, had been nationalized by Charles de Gaulle in 1945. In the late 1990s, its financial performance had been buoyed by a strong European car market, several popular new models, and extensive cost-cutting. So it was time for Renault to find the partners again since merging with Swedish automaker Volvo had failed due to not match objective; internationalization. In 1997, the Asian financial crisis was like the opportunity for Renault. At that time, Nissan, a Japanese company with a famous bureaucratic management style, was a company on the verge of collapse. It faced with the loss of market share and poor returns. For worse, it was in debt and was under the pressure from the bank. These brought Renault and Nissan to ‘The Renault-Nissan Alliance’ in March 1999. The objectives of Renault are to improve the quality and internationalization. Nissan’s objectives are reduce the cost and the debt. In practice, they formed cross-company teams to study and realize synergies across the major functional areas of both firms since the alliance. They combined two nations together. CCTs had to prepare a report on their progress to the Alliance Coordination Bureau (CB) which functions were providing specialized technical advice, trying to resolve companywide policy issues that went beyond a single CCT, and trying to resolve specific conflicts within the CCTs in a given area. CB must make sure decisions are being taken on time...
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...Case Study 2.2: The Failed Merger between Renault and Volvo In 1993, merger talks finally broke down between Renault and Volvo. A merger between the two companies had seemed the inevitable consequence of a number of years of collaboration and the plans seemed well set. Cooperation between the two firms had begun in 1990 when Renault took a 25 per cent share in Volvo cars and a 45 per cent share in their truck division. Volvo, for its part, took a 20 per cent share in Renault. The early collaboration took the form of an exchange of engines, the joint purchasing of components and joint developments in quality control. The cooperative arrangements between the two companies were a constant source of internal criticism, which focused on the highly bureaucratic procedures that had been established. In this sense, a full merger was seen by both parties as the more favourable option. The strategic fit between Renault and Volvo seemed ripe for merger. Volvo had strengths in the large car market, where Renault had consistently failed to make an impact. Renault’s strengths lay in the manufacture of small cars and in diesel technology. In terms of market, Volvo was stronger in Northern Europe and especially North America and Renault had a larger market share in Southern Europe and South America. Both companies were probably too small to survive in a globally competitive volume car market. In Europe and the USA, merger was a route for survival, particularly in the face of increasing...
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...Renault/Nissan: The Making of a Global Alliance Prepared By: Jason Park & Isaac Hattem Why is Renault seeking a strategic partner? What are Renault’s strengths and weaknesses in seeking a partner? The most successful strategic alliances are between companies with complementary strengths and weaknesses. Renault has been building cars since it was started under the name Socié Renault Frè té res. Louis Renault, his brothers Marcel and Fernand, and his friends Thomas Evert and Julian Wyer founded it in 1899. Since the beginning they have been an industry leader in small car designs, combining functionality with style. In 1998 Renault was the world‟s ninth-largest car manufacturer with 4.3% of the market. During the 90‟s globalization was occurring in all industries including the automobile industry. Major manufactures were seeking strategic alliances and mergers as ways to increase market share, reduce costs, and improve productivity. Renault has been an established French automaker since it started producing cars in 1897. Like many other companies Renault has been looking to expand into the Asia for its large potential market. They felt that the best way to do this was through a strategic alliance. Renault has been looking for another automobile manufacturer to peruse a possible alliance with since the early 90‟s. From February 1990 to December 1993 Renault attempted a merger with Swedish car manufacturer, Volvo. It was expected that the merger would go through, than in December...
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...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 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. 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...
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...พันธมิตรแห่งความสำเร็จ Renault-Nissan ย้อนกลับไป 13 ปีที่แล้ว ก่อนที่ Renault และ Nissan ประกาศความร่วมมือเป็นพันธมิตรกัน ในปี 1999, Nissan ในขณะนั้น แม้จะเป็นผู้ผลิตรถยนต์ขนาดใหญ่เป็นอันดับที่ 2 ในประเทศญี่ปุ่น แต่ก็อยู่ช่วงที่ประสบภาวะตกต่ำอย่างหนัก โดยผลประกอบการขาดทุนมาตลอดตั้งแต่ปี 1992 (ยกเว้นปี 1996) ส่วนแบ่งตลาดในประเทศตกต่ำลงตลอด 26 ปีที่ผ่านมาและไม่มีทีท่าจะสิ้นสุด ภาระหนี้สินที่มีอยู่สูงถึง $20 billion ซึ่งมากกว่า ขนาดธุรกิจของ Nissan อยู่ถึง 4 เท่า ธนาคาที่เคยให้กู้เงินมาตลอด ก็หยุดที่จะปล่อยกู้ให้ พร้อมทั้งกดดันให้ Nissan พยายามหาคู่ธุรกิจเพื่อช่วยลดภาระหนี้สินลง และเพิ่มเงินสดให้ธุรกิจรอดพ้นจากภาวะล้มละลาย สาเหตุที่ทำให้ Nissan ตกต่ำเป็นผลมาจาก โครงสร้างการบริหารงาน ที่ล้าสมัยคล้ายระบบราชการ (Bureaucratic company) มีลำดับขั้นและการตัดสินใจที่ซับซ้อน และรูปแบบการบริหารก็ไม่คำนึงถึงประสิทธิภาพการผลิต มีระบบ Supply Chain ซับซ้อนจากการที่มี ผู้ผลิตชิ้นส่วน (Supplier) มากกว่า 3,000 ราย สำหรับ 25 platforms มีรถเพียง 4 รุ่นเท่านั้นที่กำไรได้ จากทั้งหมด 43 รุ่น ในปี 1992 Yukata Kume, CEO มีความพยายามที่จะแก้ปัญหา โดยออกมาตรการ ‘Plant Closing’ เพื่อที่จะลดความซับซ้อนของระบบ supply chain และเพื่อลดต้นทุนโดยรวม แต่ภาวะตกต่ำก็ยังคงดำเนินต่อไป ในปี 1993, CEO คนใหม่ Yoshifumi Tsuji ยังคงดำเนินการด้วยวิธีคล้ายๆเดิม และในปี 1996 ก็มีการเปลี่ยนตัว CEO อีกครั้งเป็น Yoshikazu Hanawa ซึ่งอยู่ในช่วงที่เงินเยนอ่อนตัวจึงช่วยให้บริษัทสามารถส่งออกรถได้มากขึ้น แต่ก็เป็นเพียงช้วงสั้นๆ จนกระทั่งถึงปี 1998 ที่ภาวะที่เลวร้ายยังไม่สามารถแก้ไขได้ Hanawa จึงเริ่มที่จะมองหาคู่ธุรกิจ...
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...years. Until French auto maker Renault entered with a proposed plan to partner both companies in what became known as the Renault-Nissan B.V. (Besloten Vennootschap) strategic alliance. Much had been accomplished in the first three years of the alliance. Nissan and Renault had the opportunity to take advantage of each others core strengths and capabilities. Nissan had market reach in North America, while Renault was extremely successful in Europe. Nissan was known for their engineering, but was a company on the verge of collapse. Where one company lacked the other flourished and this proved to be beneficial to both. Renault-Nissan had created several different functional teams within Nissan to maximize synergy. These teams covered different departments, management levels and regions for both companies and were meant to ensure that the alliance would be managed strategically.Once allied with Renault, Nissan’s once poor financial performance and debt dramatically decreased, and Nissan’s profits totaled 47% of Renault’s profit for 2001. World market share rocketed at more than 9.2%, placing Renault-Nissan in the top five automakers in the world. 2) Based on your study of this case, what would you say about the meaning of an alliance? An alliance is like a marriage. It is not a one man show but a give and take kind of partnership. Two partners must make continuous efforts to keep a marriage productive and happy. The staff at both Renault and Nissan worked as equals with...
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...Renault Nissan Alliance Cotina Mills BSA 555 MBA 462 October 21, 2013 Dr. Peter Natale CERTIFICATION OF AUTHORSHIP: By my signature, and to prevent HONOR CODE violations, I certify that I am the author of this paper and that any assistance I received in its preparation is fully acknowledged and disclosed in the paper. Through the use of APA format, I have cited any sources from which I used data, ideas or words, either quoted directly or paraphrased. I also certify that this paper was prepared by me specifically for this course. Student Signature: __________________________________ Cotina Mills Table of Contents Introduction ……………...………………………..………………………………………….. 3 Vision……………………………………………..…......……………………………………..4 Mission…………………………………………………………………………………………4 Issue…………….………….………………..………………………………………………….5 Strategy…..…………………………………..…………………………………………………7 Current Operations……………………………………………………………………………...9 Introduction Renault–Nissan Alliance is a strategic Franco-Japanese partnership between automobile manufacturers Renault, based in Paris, France, and Nissan, based in Yokohama, Japan. Together they sell more than one in 10 cars worldwide. The companies have been strategic partners since 1999 and have nearly 350,000 employees. They control seven major brands: Renault, Nissan, Infiniti, Renault Samsung Motors, Dacia, Datsun and Lada. The car group sold 8.1 million cars worldwide in 2012, behind Toyota, General Motors and Volkswagen. As of July...
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...Production line The factory of Renault Trucks Vénissieux assembles the 6-cylinder engine blocks of 9 and 11L, which are routed to Sweden where the business unit of five brands of the Volvo Group is installed. The “main” engines (engine block, cylinder head, crankshaft, camshaft and crankcase) are performed by the Volvo Group's business units while the supply of other parts (the circuits of oil, gas, electric ...) is from 680 external suppliers. The Engine of 9 and 11L of all the brands of Volvo Group operates in plant Vénissieux. The plant operates five days a week. The engine factory Vénissieux covers 10,000 m² and engine assembly operations are spread over two production lines, each 15 meters: the line ¾ and the line ¼. Each piece assembled has a serial and manufacturing number, which is common to all suppliers of Renault Trucks, to ensure the traceability of engines and to facilitate communication between the various stakeholders. This system of EDI (Electronic Data Interchange) also allows the company to gain speed. The causes of malfunction of an engine due to incorrect assemblage of the pieces can easily be identified and corrected in accordance with the Group's quality policy. Workers have 3 or 4 roles at the same time in the Assembly line. On the main assembly line, several robots are very important. These robots perform tasks in such quality that it would be impossible to assign this task to a human being. They are checking the robots work very often to make sure...
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...Globaloganization of Renault Development Strategy By Said Cherkaoui Executive Briefing: This article presents the drive of Renault from the edge of bankruptcy to the rise of its model Logan to international preeminence, fame and success. At the same time, Renault concentrated its production in countries that have been considered by the major car manufacturers as solely a marketplace and not the location of their production. For Renault, the first half of the 1980s were “the crossing of the desert” when the French automaker reached the edges of bankruptcy, while Volkswagen continued to expand in terms of production and market reach. Volkswagen developed its international base through the acquisitions in 1991 of Skoda, the automobile manufacturer in the Czech Republic and SEAT, the Sociedad Española de Automóviles de Turismo. After the withdrawal of Fiat in 1981, the Volkswagen Group subsidiary Audi AG signed a cooperation agreement with SEAT, becoming the major shareholder in 1986, and 100% owner of the company. In 1990, SEAT expanded its operations in China and Latin America. In comparison, Renault put the brakes on its international drive and concentrated its efforts on solving internal dissensions in the aftermath of the terrorist slaying of its CEO. Renault also focused on renewing its relationship with the new French Government, smoothing the resistance of left-wing Unions, finding acceptable solutions to its large and aging North-African immigrant ...
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... and where relevant ethical concerns. Submitted on December 10, 2010 The internationalization of Renault : a strategy of development in emerging countries Nowadays, Renault is the car manufacturer of reference in France, ahead of Peugeot and Citroën of the PSA group. The Renault-Nissan alliance, established in 1999 and based on two independent companies with their own culture and their own brand identity, is the fourth largest automotive group in the world. After experiencing some difficulties in the 80's, Renault has developed an aggressive strategy of international development that makes it today one of the key players in the global automotive market. By focusing on cultural, political, legal and ethical issues, we will first explain the different stages and difficulties in the internationalization of the group. Then, we will study its different implementation strategies in the several new markets and finally, we will discuss the consequences of the internationalization of Renault. The story of Renault started on the 24th of December in 1898. The society Renault Frères grew rapidly and in 1903, Fernand Renault started to develop the commercial network of the company and created the first subsidiaries abroad – England, Belgium, Italy, Germany, Spain and the United States. However, because of collaboration during the 2 nd world war, the state became owner of Renault Frères in 1945. During this period, the internationalization was started but limited : only some european...
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...Case Study 2.2: The Failed Merger between Renault and Volvo In 1993, merger talks finally broke down between Renault and Volvo. A merger between the two companies had seemed the inevitable consequence of a number of years of collaboration and the plans seemed well set. Cooperation between the two firms had begun in 1990 when Renault took a 25 per cent share in Volvo cars and a 45 per cent share in their truck division. Volvo, for its part, took a 20 per cent share in Renault. The early collaboration took the form of an exchange of engines, the joint purchasing of components and joint developments in quality control. The cooperative arrangements between the two companies were a constant source of internal criticism, which focused on the highly bureaucratic procedures that had been established. In this sense, a full merger was seen by both parties as the more favourable option. The strategic fit between Renault and Volvo seemed ripe for merger. Volvo had strengths in the large car market, where Renault had consistently failed to make an impact. Renault’s strengths lay in the manufacture of small cars and in diesel technology. In terms of market, Volvo was stronger in Northern Europe and especially North America and Renault had a larger market share in Southern Europe and South America. Both companies were probably too small to survive in a globally competitive volume car market. In Europe and the USA, merger was a route for survival, particularly in the face of increasing...
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...Carlos Ghosn Carlos Ghosn, born 9 March 1954 is a Brazilian-Lebanese businessman who is currently the Chairman and CEO of Yokohama, Japan-based Nissan and holds the same positions at Paris-based Renault, which together produce more than one in 10 cars worldwide.[1] Ghosn is also Chairman and CEO of the Renault-Nissan Alliance, the strategic partnership overseeing the two companies through a unique cross-shareholding agreement. For orchestrating one of the decade's most aggressive downsizing campaigns and spearheading the turnaround of Nissan from near bankruptcy in the late 1990s, Ghosn earned the nicknames "le cost killer" and "Mr. Fix It."[2] After the Nissan financial turnaround, he achieved celebrity status[3] and ranks as one of the 50 most famous men in global business and politics.[4] In Japan, he is the superhero protagonist in a popular "manga" comic book series.[5] His polemical decision to spend $5 billion to develop the world's first mainstream electric car, the Nissan Leaf, is a subject of the 2011 documentary "Revenge of the Electric Car." Personal life Ghosn was born in Porto Velho, Brazil on 9 March 1954 to a French mother and Lebanese father. At age 6, he moved to Beirut, Lebanon, with his mother. He completed his secondary school studies there, in a Jesuit school (Collège Notre-Dame de Jamhour). Then he completed his classes préparatoires at Lycée Stanislas in Paris.[7] He graduated with engineering degrees from the École Polytechnique in 1978 (X1974) with...
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...Why was the former Nissan Management unsuccessful in turning the company around? Why could they not prevent the slide of Nissan’s ranking market share, etc.? The former managers of Nissan had been struggling to turn Nissan into a profitable company for eight years. Nissans major problem were the extremely low margins due to its lack of brand power and the very unprofitable cost structure (especially regarding purchasing costs). Nissan’s organizational and financial structures where very traditional and typical Japanese (e. g. the cross-shareholdings within the kereitsu structures). All previous Nissan CEO’s where Japanese , probably each of them with a long tenure and history in the company. Each CEO was surely skilled and experienced in leading an international company. But it can be speculated that it is much harder for a Japanese CEO to make fundamental changes in Nissan's long-standing operating practices and behavioral norms of Japanese society that are deeply integrated in the corporate structure. The former managers were simply stuck in their Japanese organizational structures and no one wanted to break with their own tradition. In addition, the company advisors, a group of senior managers without line responsibilities, made sure that Japanese business practices were implemented and pursued. Some examples of these country specific, traditional structures are the kereitsu partnerships and the predominant seniority rule: Nissan was consistently strapped for cash and...
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...Article Discussion Title of Article: Ghosn Creating Value across Cultures ___________________________________________________________________ ___ 1. What is the author’s/authors’ purpose in writing this article? The author, presenting the alliance between Renault and Nissan, wants to make perfectly clear that partnering globally is an opportunity. An equal relationship with two winners. He explains the benefits which are produced by the relationship between the two at a corporate level, and the positive effects at the workforce as well. Learning through differences is essential is the send message. Moreover, the author is warning us of the hidden risks. Losing the corporate identity will have as consequence a lack employees’ motivation. Lastly, the author states that motivation is the engine of performance. 2. Name and discuss three major points on which the author(s) focus in their discussion of their primary purpose. Learning through differences: The author describes the different skills of the French, the Japanese and the Americans. The combination of these skills can disentangle difficult situations more easily and multiplies the possibilities of having Eureka Moments. I find this cross cultural consociation remarkable, people from the two edges of the world, coming from different cultures, having different expertise and knowledge, working together, creating a harmonious relationship, allowing to achieve things which differently would need much more time,...
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