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Merger of Renault, Dacia and Nissan

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The jewel of the French car industry, Renault, was founded in 1898 and is one of the oldest companies in the world of car makers. After its collaboration with the Germans during the Second World War, the company was nationalized in January 1945 and took the name of National Board of Renault plants.

However, Renault became a public limited company in 1990 and was subsequently privatized in 1996. The firm was to face a pivotal year in 1999. Indeed, on March 27 a historic alliance was signed with the Japanese giant. The group Renault and Nissan joined in an alliance that had no equivalent in the auto world.

Meanwhile, the company acquired 51% stake in Romanian carmaker Dacia, which became a new subsidiary of Renault. However, by this alliance and this acquisition, we can ask ourselves what are the territorial strategies of Renault in France and abroad, including its equity. Why did the company choose an alliance with Nissan instead of an acquisition, as was the case with Dacia?

In an attempt to answer these problems, first it will be seen how the Renault brand is in France and worldwide. Then in a second part, it will be discussed, how Renault could conquer new markets through the acquisition of Dacia. Finally, the case of Nissan's strategic alliance with Renault will be discussed in detail.

Renault designs, manufactures and markets cars and trucks. In line with this automotive business, it also manages service activities (RCI) and some industrial holdings in the majority as SNR (National Society of Bearing) or minority as in Renault Agriculture (tractors).
With the acquisition of the Romanian carmaker Dacia, then resuming the operation assets of South Korea's Samsung Motors, Renault operates three automotive brands, Renault, Dacia and Samsung.

The Renault Group distributes its vehicles in Europe through a primary and secondary network.
The primary network consists of establishments that can sell and service vehicles of the brand as well as institutions such as Renault France Automobiles (France only) and subsidiaries of Renault grouped within Europe Automobiles Renault. These two structures are intended to ensure sustainability and strengthen the commercial and financial performance of the Group's network in the context of evolution of car distribution in Europe.

The political transformation of the primary network company Renault has continued and expanded to apply to the network of Nissan. Through the Alliance, a network of shared plates began to emerge, to improve coverage over vast territories. In eight countries (France, Germany, Spain, Italy, Netherlands, United Kingdom, Switzerland and Austria), the policy of poles common with Nissan has been applied, making it possible to achieve economies of scale.

The secondary network, meanwhile, includes officers and Renault dealers, who are generally made by small settlements, commercially related to a case the primary network. In terms of distribution, significant agreements are: Renault and Volvo Cars since 1981 have a partnership agreement for Renault to access a broad sales network in the four Nordic countries (Sweden, Norway, Denmark and Finland).

This agreement was renewed and strengthened in 2003 with the creation of a new entity "Renault Nordic" with responsibility for coordinating the sales and after sales of Renault vehicles in these four countries. Activities back-office (human resources, information and development of distribution networks) are shared with Volvo, allowing for economies of scale.

Tags: Renault, Renault ? Nissan alliance, Renault's acquisition of Dacia

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