Renault/Nissan Worksheet

Few industries display the nature of globalisation as clearly as the car manufacturing sector. In the latter part of the twentieth century the number of independent companies shrank. The need for flexibility and economies of scale drove car makers like Rover into the arms of, firstly Honda (through a collaborative agreement), and then BMW (through takeover). On a larger scale there is the merger of Daimler-Benz with Chrysler and the purchase by Renault of a 36% stake in Nissan. The table below contains sales data for these companies for the period 1997 - 1999. The minority shareholding taken by Renault occurred in 1999. Study the data and try the questions that follow.

Source: Company Reports & National Automotive Associations (quoted by Automotive Intelligence)

See also the Data use in business section for more background on the merger.

Now, with a range of data gathered, your task is to select the information that, in your opinion presents the background to the part-takeover of Nissan by Renault, in the most effective way.

You could start by trying the On the case worksheet (on the main Biz/ed site) that takes this Renault-Nissan story further or perhaps have a look at the activity in the Data use in business section for further background on Renault-Nissan and Carlos Ghosn, Nissan's president.

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