Mergers, Acquisitions and Takeovers Case Study

Renault-Nissan-Mahindra: The Strategic Partnership for Growth

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Abstract:

In the late 1990's, the global automakers were motivated by the synergies acquired through alliances to form partnerships across the world. India became renowned for its low-cost, qualified, skilled workforce and overall infrastructure facilities. Many multinational auto giants like Fiat, Honda, Suzuki, Renault, etc formed alliances with Indian companies. On February 26th 2007, the first three-way alliance in the automobile industry was formed by France’s Renault, Japan’s Nissan and Mahindra and Mahindra of India. The purpose of the alliance was to facilitate the establishment of a $902 million greenfield automobile plant in Chennai, India. The uniqueness of this alliance is that it will set up the manufacturing facility at a single location to manufacture utility vehicles and cars for all the three partners under their respective brand names. It would be India's biggest vehicle manufacturing facility.

This case facilitates discussion on the opportunities and challenges that the unique three-way alliance will face in the emerging auto market of India.

Pedagogical Objectives:

• To understand the dynamics of the Indian automobile industry
• To discuss the uniqueness of the Renault-Nissan-Mahindra alliance
• To analyse the opportunities and challenges of the three-way alliance in the emerging auto market of India.

Keywords : Three-way Auto Alliance; International Consortium; Renault-Nissan-M&M; Synergies of Auto Alliances; Indian Automobile Industry; Global auto alliances; India's biggest vehicle manufacturing centre; Mahindra Renault; Mergers,Acquisitions,Alliances Case Study; Passenger cars/ Tractors; Strategic Alliance/ Joint Venture; The Strategic Alliance: Opportunities; The Strategic Alliance; Global automakers; Greenfield automobile Plant; Auto Alliances in India

Contents : 
Indian Automobile Industry – The Current Scenario
Automobile Production Trends in India
Renault-Nissan-M&M: A Strategic Alliance in Automobile Industry
Carlos Ghosn’s Nissan Revival Plan
The Strategic Alliance: Its Opportunities and Challenges