Alliance Formation
What financial challenges was Nissan facing before the alliance?
Nissan experienced declining sales, significant debt, and a need for $6 billion in investment to stabilize its operations.
Name a technological goal of the Renault-Nissan alliance.
Be among the top three carmakers in terms of technology.
What type of teams did Nissan use to address issues ?
Cross-functional teams
What were the major components of the Nissan Revival Plan?
The plan included identifying internal issues, forming cross-functional teams, optimizing costs and resources (including reducing the workforce by 21,000 positions), and centralizing procurement through the Renault-Nissan Purchasing Organization (RNPO).
How much of Mitsubishi's shares did Renault-Nissan acquire in 2016?
34%
What year was the Renault-Nissan alliance officially signed?
1999
What was Nissan's primary goal in the alliance?
To reduce debt and save the company.
How many positions were reduced as part of Nissan’s revival plan?
Up to 21,000 positions
How did cross-functional teams contribute to Nissan's operational changes?
Teams composed of professionals from diverse domains facilitated comprehensive problem-solving and improved collaboration, leading to better decision-making and efficiency.
How did the collaboration impact global sales for Renault and Nissan?
The partnership improved both companies' market visibility and operational efficiency, contributing to nearly 10 million vehicle sales in 2016
What financial amount did Renault provide to Nissan as part of the alliance?
$5 billion
What did Renault hope to achieve from the alliance?
Global expansion and recognition
What does RNPO stand for?
Renault-Nissan Purchasing Organization
What benefits did Renault and Nissan achieve from the shared distribution center established in 2018?
The center streamlined logistics, reduced costs, and improved inventory management for Renault, Nissan, and Mitsubishi.
How did Renault's supply chain expertise benefit Nissan's operations?
Nissan adopted Renault’s advanced supply chain and supplier management techniques, which improved efficiency and reduced costs.