(Sources: www.media.renault.com)

Global Strategy of the Renault-Nissan alliance

Subject: Joint analysis on the Renault-Nissan alliance addressed to the CEO of Mitsubishi (group project)

From: Group 22 Michael Sutherland Nicolas Murcia Saebong Cheon Yu Ri Na Jeong To: Professor Jan Jörgensen Due date: November 22, 2006

To M. Takashi Nishioka, Chairman of the Board of Mitsubishi Motors,

Nowadays, Renault-Nissan is the fourth worldwide automaker with sales of 6,129,254 units in 2005, up 5.9% over 2004 (http://www.nissan-global.com/). Considering the traditional position of Mitsubishi in the actual market, the analysis of the Renault-Nissan alliance case would provide you with valuable elements on how to approach the growing and …show more content…

In terms of delegation, functional requirements were not clear, complete and shared components must meet clear specifications to

be certified by numerous protocols. Secondly, the specifications were complicated to convey because they were ambiguous. For example, how would you translate the necessity to safely attach a fuel tank? Consequently, the cooperative process is mainly focused on the evaluation of resources and understanding of concrete solutions. Furthermore, even if the Renault engineering team reaches a consensus on the efficient specifications with the Nissan engineering team, they will have divergence on the method implementation should be accomplished. It is logical to expect many minor issues in cooperative design processes that partners will inevitably deal with when planning design methods. But when it becomes a severe issue, both parties were disadvantaged. This is why they applied a double validation process to decide whether Nissan and Renault should continue their efforts toward a joint solution or end their collaboration on particular tasks. It is important to notice the ability of partners to come across a feasible solution when issues arise (Segrestin, 2003).

The alliance has provided advantages to both companies. They can progress into foreign markets faster and with lower costs because they don’t have to build new plants. Renault builds cars in Nissan’s Mexico plants and Nissan uses Renault’s Brazil plant and