Renault
French automaker that formed the groundbreaking Renault-Nissan alliance in 1999, investing $5.4B for a 36.8% stake in near-bankrupt Nissan.
French automaker that formed the groundbreaking Renault-Nissan alliance in 1999, investing $5.4B for a 36.8% stake in near-bankrupt Nissan. Under Carlos Ghosn's leadership, Renault demonstrated exemplary coalition-building by investing 24 months in relationship development before making major decisions, respecting Japanese culture, and maintaining Nissan's autonomy.
The alliance worked for 19 years, generating $7B in annual synergies and becoming the world's 4th-largest automotive group. However, when the French government (15% shareholder) pushed for full merger in 2018, the coalition collapsed within 90 days, destroying $18B in combined market value.
Renault's experience illustrates both the massive returns possible from proper coalition grooming (1,120x ROI on relationship investment) and the catastrophic costs of coalition betrayal when short-term extraction replaces long-term reciprocity.
Strategic Pivots of Renault
European-focused automaker → Global alliance partner with Nissan
successCoalition partnership → Attempted merger/dominance
failureKey Leaders at Renault
Carlos Ghosn
Alliance CEO
Architect of coalition-building approach at Nissan, demonstrated grooming investment by spending first year listening, learning Japanese culture, and respecting autonomy
Cautionary Notes on Renault
- French government's 15% stake created external pressure for merger that violated coalition norms
- 2018 merger push destroyed 20 years of accumulated relationship capital in 90 days