What Was the Impact of Nissan’s Partnership with Renault?
You probably already know at least a little about the Nissan brand. Maybe you have bought and driven one of their cars. You may also know someone who has.
Nissan Ennis is a great place to go if you’ve got your eye on a new or used Nissan model. Before you do that, though, you may want to learn a bit more about the company. In particular, you might be curious about the much talked about partnership between Nissan and Renault.
Some aren’t even aware of this collaboration, though you’re probably at least someone familiar if you’re up to date on what’s happening in the automotive world. Let’s run through the basics of what happened when these two decided to have a temporary alignment.
What is Renault?
You likely know about the Nissan brand already. Before we go any further, though, you should know about Renault, as some individuals, particularly Americans, may have never even heard of it before.
Renault is a French company. Like Nissan, they are in the automotive niche. Renault is part of a conglomerate that also features Mobilize, Alpine, and Dacia.
It would take too long to break down the company’s storied history. Suffice to say that it has been in existence for over 115 years, and that it has produced many bestselling vehicles, though not so many that are known to the American market.
When Did the Renault and Nissan Partnership Occur?
Getting back to Nissan and their relationship to Renault, the alliance was originally proposed and implemented in 1999. At that point, it would probably be accurate to say that Nissan wasn’t doing so well. Though they were established in the US market, their sales were lagging behind other automotive giants, both American brands like Ford and Chevy and international ones like Toyota and Hyundai.
The purpose of the proposed alliance between Nissan and Renault was twofold. It was obvious enough what Nissan wanted. They needed to boost their sales numbers and remain solvent in America, as well as overseas, to some extent.
As for Renault, they wanted to get into the American automotive market in a more significant way. They were still a virtual unknown and regarded the United States as an untapped goldmine.
Now, let’s get into more detail regarding what the alliance managed to do. We’ll start with how it impacted Nissan.
What Did the Partnership Do for Nissan?
If we go back again to 1999, we see a Nissan company that is struggling on all fronts. Suddenly, the Renault deal goes through, with the two companies agreeing on a framework that they each feel will be mutually beneficial.
Before long, Nissan sees the impact of a cash infusion from Renault to prop up their R and D department. Renault also gives them guidance from their most gifted engineers. Within the space of a few months, Nissan began to see a gradual resurgence. Their time of financial instability began to recede into the rearview.
Nissan was also able to increase its global footprint in various ways. It became more of a presence in international markets. The company’s forays into Europe were the most obvious, though they were also able to become a better-known brand in several parts of Asia.
The research, development, and manufacturing with which Renault helped Nissan was nothing less than dramatic. It led to increased efficiency and cost cutting measures.
Perhaps even more notable, though, was the sense of increased morale that came to be in evidence throughout the entire Nissan workforce. They went from a company circling the drain to one that had a new lease on life.
What About What Nissan Did for Renault?
It would be a mistake to say that Nissan brought nothing to the table, though. Quite the contrary: Renault saw global expansion that was just as profound as what Nissan was experiencing.
In particular, Renault’s sales increased in Europe. The company had always done well there, but now, their numbers increased dramatically.
Nissan began to supply Renault with diesel engines that went into a line of new and revamped vehicle models. Like Nissan, Renault also saw many benefits from Nissan engineers sharing their expertise. Electric vehicles became a focal point for both companies. They also turned their collective eyes toward emerging markets.
The alliance ultimately led to the development of new vehicle models and various forms of new tech. Increased efficiency in manufacturing and cost savings by both companies were also welcome benefits of the collaboration.
The Bottom Line
It’s hard to say if Nissan would have gone under if Renault had not chosen to step in and lend a hand. It’s not likely Renault would have shuttered, though they probably would not have enjoyed the unprecedented period of global expansion that the collaboration yielded.
In short, this brilliantly conceived team-up brought about synergy for both companies across several areas, including logistics, manufacturing, engineering, and purchasing power for new materials. The sharing of economic resources led to reduced costs for both companies that possibly saved Nissan and definitely propelled Renault into the stratosphere in a way that was unprecedented.
The new technologies and products that came out of this pairing can be seen to this day. Many of the EV designs that are now on roadways across the world were either the direct or indirect results of engineers from Nissan putting their heads together with ones from Renault.
The enhanced brand recognition of both companies is another impact that perhaps neither anticipated, but that they have certainly enjoyed. Renault is now known in some parts of the world where it was a veritable nonentity for decades, while the same could be said for Nissan.
What remains interesting about the Nissan-Renault partnership is that it’s a relatively rare instance where two companies got together to help each other without one absorbing the other. The two remained separate, though the relationship would boost both in ways both anticipated and completely unexpected.
Now, Renault is more powerful than ever, while Nissan is thriving as well.
