Alliance of Nissan & Renault on the verge of collapse

Nissan & Renault

There would be the reverberation of a break-up across an ongoing struggling. 10th Anniversary of the Renault-Nissan alliance was marked by Carlos Ghosn in 2009 by disregarding the global recession & issuing a self-confident statement which listed ten major achievements of the pre-eminent symbol of Franco-Japanese co-operation. In March, as the partnership sneaked past its 20th anniversary, no one at Nissan or Renault even bothered to email employees to note the landmark. Staff, as well as, the investors in both firms now openly question whether there will any 21st anniversary to celebrate. The difference between how the two anniversaries were celebrated say, advisers, analysts, and people senior in both firms, effortlessly captures the crisis-hit state of the post-Ghosn partnership. Various shared functions, in particular communications & the chief executive’s office which most symbolized Mister Ghosn’s grip over his empire, have been closed altogether.

In one case, about a dozen staff members who continually came to work at the alliance’s Paris headquarters for 5 months after Mister Ghosn’s public collapse & arrest discovered their fate when Renault staff turned up unexpectedly to measure the office for its new occupants.

Activity in other departments inclusive of manufacturing & quality control has reduced to walking pace, informed people close to both firms. There is also a short supply of goodwill. As an auto analyst of CLSA Christopher Richter describes the alliance in mid-2019 is in name only. That may exaggerate how easy it would be to end the terms. For two decades the alliance was the banner under which two of the giant car firms in the world operated, often successfully & often to the envy of the industry. The gradual decline in both Nissan and Renault’s share prices after the Mister Ghosn’s arrest, tell investors, prove to his reputation, but increase the doubt whether the tie-up was an unrepeatable expression of the skill of Mister Ghosn or a genuine powerhouse.