Business Intelligence

Carlos Ghosn As CEO Of Nissan And Renault: Can He Rework The 'Nissan Magic'?

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Executive Summary

In March 1999, Renault, the then ninth carmaker in the world announced its alliance with Nissan investing $5.4 billion. The alliance had helped both the companies equally, in terms of cost savings from not requiring to construct new plants where the alliance can use common buildings, common platforms etc. This had also helped them enter new markets faster and gain other synergies. The purchasing power had also increased as they ordered and bought components through Renault-Nissan purchasing organization for both the companies at a time. The alliance had from the beginning ensured that the inter-company cultural clashes do not exist, by maintaining individual cultural identities.

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