Strategic Alliances, Collaboration and Joint Ventures Case Study

GM-Renault-Nissan: An Alliance to Dominate Global Auto Industry

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Abstract:
In 2006, global auto industry came to know about the alliance between the three giants of automobile industry, General Motor, Renault and Nissan. Though General Motor was able to retain its superiority in global automobile industry, the company recorded huge loss. The success of Renault-Nissan alliance inspired General Motor management to make an alliance with it. This alliance will help three companies in cost rationalization and will help in expanding geographical reach. But, since the three companies belong to different country with different management culture, analysts were skeptical about the success of the alliance. The case discusses about the potential synergies in the alliance and the problems associated with it. It also raises the question whether Carlos Ghosn would be able to replicate his successful business model to help General Motor to turnaround.

Pedagogical Objectives:

• To discuss the logic behind an alliance between GM and Renault-Nissan
• To analyse if such an alliance would help the companies to strengthen their respective positions
• To gain an insight into the global automobile market
• To debate whether the alliance, if formed, would work.

Keywords : Mergers,Acquisitions,Alliances Case Study;General Motors (GM); Nissan; Renault; Alliance; Global auto industry; US auto industry; Ford Motor Company; Daimler Chrysler AG; Hyundai Motor Corporation; Volkswagen; Honda Motor; Carlos Ghosn; Rick Wagoner; Chevrolet; Suzuki

Contents : 
GENERAL MOTORS
RENAULT SA – THE FRENCH AUTO GIANT
NISSAN MOTOR CORPORATION
AUTOMOBILE INDUSTRY: BRIEF OVERVIEW
BACKGROUND NOTE: GM-RENAULT-NISSAN ALLIANCE
POSSIBLE SYNERGIES AND WHAT WOULD CARLOS GHOSN DO NEXT
THE ALLIANCE: WILL IT WORK
GM’s Financial Highlights for 2003-2005
Plants scheduled to close under the planned GM restructing program