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    Renault Nissan Partnership

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    Consider the Renault Nissan Partnership. After review of all the documents you can find on the web and in libraries, write a 2 to 3 page response to the following questions:

    1. What is the most important problem facing the Renault Nissan Partnership, Inc.?

    2. What recommendation(s) would you make to Renault Nissan Partnership, and in what order of priorities?

    3. How do you balance between your commitment to shareholders and your commitment to the community?

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    Renault S.A. and Nissan is having a global automobile alliance. Renault SA manufactures cars (including Clio, Laguna, Megane, Modus, Logan, Espace, Twingo, and Scenic) and light commercial vehicles (Kangoo Express, Traffic, and Master, Tractors and other related vehicles.
    The financial information for Renault is as follows:

    Key numbers for fiscal year ending December, 2006:
    Sale: $54,787.9M
    One year growth: 11.9%
    Net income: $3,882.7M

    Nissan Motor Co., Ltd. is a Japanese automobile manufacturer which formerly marketed vehicles under the Datsun brand name. It's known for its engineering and manufacturing excellence and now it's turned to one of the most profitable automobile companies in the world.

    The partnership
    This is a unique partnership between the French and Japanese vehicle manufacturer.
    This unique partnership was signed on March 27, 1999, each having its own distinct corporate culture and brand identity, linked through cross-shareholding. Renault has a stake of 44.4 per cent in Japanese automaker Nissan while Nissan in turn has a 15 per cent stake (non-voting) in Renault.
    Renault S.A. is well known for numerous revolutionary designs, security technologies and motor racing. (Wikipedia) Whereas Nissan is known for its engineering excellence.
    In 2005 The Renault-Nissan Alliance represents more than 9.8% of the worldwide market (5.74% for Nissan & 4.04% for the Renault group) with sales of 3,597,748 (Nissan) and 2,531,500 (Renault Group), placing the alliance 4th after GM, Toyota, and Ford. (wikipedia)
    The alliance is unique, one even though it's made of very different companies. Renault's a very French company based in Paris and expanding globally and Nissan is a very Japanese company, established in Tokyo and growing globally. These two companies have nothing in common except the common willingness to have some identities work together for the common good.


    This alliance has been successful up till now due to its maverick CEO Carlos Ghosn. He had been successful in keeping the identities different yet matching their synergies in an effective manner.

    What is the most important problem facing the Renault Nissan Partnership, Inc.?

    Currently Automobile market is one of the toughest and competitive markets in the world. Moreover big companies like GM, Ford is into losses. Thus the most important ...

    Solution Summary

    This in-depth solution of 1,442 words gives background information on the Renault Nissan Partnership and looks at the biggest problem facing the company, provides recommendations in relation to priorities and also explains how to balance between commitment to shareholders and the community. All references used are included.