Renault-Nissan Alliance: Success by Integration

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Case Details:

Case Code : BSTR422
Case Length : 14 Pages
Period : 2000-2012
Pub Date : 2013
Teaching Note :Not Available
Organization : Renault; Nissan
Industry : Automotive
Countries : Europe; Japan; Global

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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About Nissan

Nissan's origins date back to 1911, when Masujiro Hashimoto set up The Kwaishinsha Motor Car Works in Japan. After assuming different forms, the company was rechristened Nissan Motor Co. Ltd., when Nihon Sangyo Co. Ltd. acquired a 100% stake in June 1934.

Nissan's first factory was based in Yokohama city, Kanagawa Prefecture. The first automobile models, called "Datsun," were launched in the early 1930s. In 1937, Nissan introduced the Model 70, a passenger car model; the Model 80, a truck; and the Model 90, a bus.

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During the Second World War, Nissan was forced to stop production of passenger cars and trucks. Production resumed in 1945, when the first post-war car rolled off the production line. The late 1940s witnessed the launch of several new models, such as the Model DA, Model DB, Model 290, etc.

In 1952, Nissan entered into a technological cooperation agreement with UK-based Austin Motor Co. Ltd. In 1959, the company established its first overseas factory in Taiwan.

In 1960, Nissan set up base in the US. The following year, Nissan Mexicana, SA de CV was established in Mexico. In the 1960s, several new models such as the Datsun Bluebird, Gloria, Silvia, President, Laurel, Skyline, Cedric, Echo, Sunny, etc., were launched. In 1969, cumulative exports touched the 1 million mark.

In 1972, the cumulative domestic production of vehicles breached the 10 million mark. And by 1977, cumulative production had surpassed 20 million units.5 In 1979, the Nissan Design International, Inc. was established in the US. During this period, Nissan launched models such as the Cabstar, Civilian, Cherry FII, and Caravan.

In 1981, Nissan started marketing its vehicles under the Nissan marquee as part of a new corporate identity program. In 1986, the company announced its new corporate principles and philosophy. In 1989, Nissan Europe NV, Nissan's regional headquarters for European operations, and Nissan Distribution Service (Europe) BV were established in the Netherlands. In October 1992, cumulative domestic sales surpassed 30 million units.6

As of FY 2011, Nissan employed 157,365 employees and recorded a net profit of 341,433 million.7

Excerpts - Next Page>>

6] Ibid.
7] "Nissan's FY 2011/12 Net Profit Up 7%, Suzuki's Jumps 19%,", November 5, 2012.

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