strategic management in the ailing automobile industry.pdf

But presumably the company will remain in red until

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up the position in June. But presumably the company will remain in red until 2010. 4.2.12 Renault / Nissan Signed on 27 March 1999, the Renault–Nissan Alliance is the first of its kind in the automotive industry , involving a Japanese and a French company, each with its own distinct corporate culture and brand identity, linked through cross- shareholding. Renault has a stake of 44.4 percent in the Japanese automaker Nissan, while Nissan in turn has a 15 percent stake in Renault. In 2007 the Renault– Nissan Alliance held 9.1% of the worldwide market with global sales of 6 100 438 passenger cars and light commercial vehicles 6 (Nissan: 3 431 398 unit, Renault: 2 669 040 unit), placing the alliance fourth after GM, Toyota, and Ford. 6 Light commercial vehicle (LCV) is the term for goods vehicle up to 3.5 tons. Pick-up trucks and vans qualify to this category, both commercially based or passenger car derived.
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43 Since the Alliance was established, Nissan has improved its finances. Renault has reinforced its performance and has accelerated its international development. The two parties combine expertise and share their technology . Nissan pilots the development of new gasoline engines while Renault focuses on diesel engines. The alliance announced a partnership with an Indian manufacturer, to develop an ultra- low-cost vehicle by 2010 and a joint venture with the Russian automaker AvtoVAZ in which the French firm acquired a 25% stake. Renault will bring modern technology and know-how, while it will get access to capacity and AvtoVAZ dealer network that it would otherwise have had to build expensively for itself. 4.2.13 Fiat The Italy based Fiat Group was founded in 1899 initially with the aim of focusing on industrial production of cars, industrial and agricultural vehicles. Over time it has diversified into many other fields, and now it has activities in a wide range of sectors in industry and financial services . It is Italy's largest industrial concern. The Fiat Group Automobiles include: Abarth, Alfa Romeo Automobiles, Fiat Automobiles, Fiat Professional, Lancia Automobiles and Ferrari S.p.A. The European Car of the Year prize has been awarded twelve times to the Fiat Group in the past 40 years, more than any other manufacturer. Fiat was a key player in developing motor industries for a number of countries from the 1950s. Fiat automobiles have been made in Poland since 1920. In 1955 it agreed with the Yugoslav carmaker Zastava to assemble Fiats for Eastern Europe. In 1966, Fiat helped U.S.S.R. to build a new car factory (AvtoVAZ). The Spanish SEAT was also set up with Fiat assistance, producing Fiat models under its own brand name until 1981. The largest concern outside Italy is in Brazil, but it has been producing cars in Argentina, India, Bulgaria, Turkey, South-Africa, Egypt and even in Ethiopia and Sri Lanka.
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  • Spring '14
  • Holtsclaw,ChariceL.

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