The Renault and Nissan Alliance
A strategic and global partnership for the 21.century
Now the fourth largest automobile producer in the world

(Tokyo) On the 27th of March 1999 Renault and Nissan signed an agreement on a strategic partnership of both automobile manufacturers after a few months of preparatory negotiations. The agreement was signed by the presidents of the companies - Louis Schweitzer of Renault and Yoshikazu Hanawa of Nissan.

The new alliance becomes the fourth largest automobile producer in the world with an annual production of over 4.8 million automobiles.

Renault invested 5 billion Euros (33 billion FRF) to purchase 36,8% of Nissan Motor's shares and 22,5 % Nissan Diesel's shares. The main goal, besides the financial support of Nissan, is the critical growth of the partnership's profits and the competitiveness of both producers on the world markets.

With this agreement, Renault is also entitled to acquire the European financial companies of Nissan, whose value is almost 30 million Euros.

Two of Renault's top managers were appointed to The Board of Directors and Executive Committee of Nissan. They will be responsible for new model development and finance. The current vice president of Renault, Carlos Ghosn, became the executive director of Renault and Yoshikazi Hanawa will become the chairman of the Board of Directors of Renault.

Eleven teams of experts, selected from both automobile manufacturers, will soon start work an analysis of the effects of the partnership on planning, car construction, purchasing and logistics. Seven other teams will deal with the marketing and sale processes in different regions of the world. 

The Renault Group produced more than 2.2 million automobiles in 1998 and became the top automobile manufacturer in Europe. The combined automobile manufacturers employ more than 138,000 people throughout the world. It°s revenue was more than 243.93 billion FRF (37.19 billion Euro) in 1998. Of that revenue, 61.4 % was made outside France. The primary strategy of the Renault Group is the growth of profits based on innovation, quality, expense reduction, and international development. It's net profit was 8.85 billion FRF (1.35 billion Euro) in 1998.

Today Renault - the first French automobile manufacturer - is represented in more than 100 countries by 18,500 dealerships. Since last year, when the Renault Group achieved a strong and long-term position in Turkey and Argentina, it has enhanced it's international development and opened a new automobile factory in Brazil. The new Brazilian production facility's capacity is about 120,000 cars per year. The Renault Group has 50 production facilities all over the world.

Renault CZ, Corp. sold more than 6000 cars last year in the Czech Republic. The automobile manufacturer has recently begun a strong and successful market strategy in the Czech Republic. Renault CZ, Corp. has raised it's sales by average of 80% in the first months of this year and has now become the third largest seller of automobiles in the Czech Republic.

Nissan Motor Company is the second largest Japanese automobile manufacturer. It produced more than 2.7 million cars in 1998 and its yearly turnover reached 50.9 billion Euros. Nissan produces and assembles automobiles in 22 factories that are located in 18 countries. Nissan products are sold through dealer networks in 187 countries.

Nissan CZ, ltd. sold 2455 cars last year and has taken twelfth place among the car importers to the Czech Republic. Sales have improved in first two month of this year - 576 cars have been sold. This has moved Nissan into eighth place in the Czech Republic.

C 1998, All rights reserved, Renault Club Czech Republic.

With the purchase of Nissan shares, Renault became a controlling partner in Nissan. This alliance has become the fourth largest automobile manufacturer in the world.

source: Renault