48 billion released by Renault against 1

Champagne for some sake in others: the Renault and Nissan employees celebrate this weekend, five years of their alliance. An original marriage in the world of the automobile, in which each has sought to cooperate in depth, while ensuring to keep as separate as possible each brand identity. Monday, the two manufacturers will unveil the new axes that they intend to print for the future to their alliance, but the positive results of the last years militate in evidence for continuity.

By signing a cheque for EUR 5 billion in the spring of 1999 to take 36.8 of the Japanese manufacturer then bankrupt (part scope year 44.4 last), Renault has made a bet more than bold. Yet the binational group climbed to 5th place in the world hierarchy by its volumes (5,357 million vehicles sold last year, or a market share of 9.3), between DaimlerChrysler-Mitsubishi and the Galaxy Volkswagen, and hopefully does not stop there.

At the request of the authority of des marchés financiers (AMF), Renault began to publish "a first look encrypted the economic weight of the alliance", year made quite difficult by differences in accounting periods, IFRS standards, and "which does not prejudge in any way a subsequent consolidation" two companies, whose heritage remain strictly separated. These reconciliations can nevertheless make a colossus to an operating margin of EUR 7,768 billion (see graph opposite), or 8.7 of its turnover (EUR 89.7 billion). A real boon for Renault, whose own operating margin did not exceed 3.7 last year, thanks mainly to its financial services.

Profitable investment

By contrast, the profitability of the investment of the French in Nissan is particularly eloquent: beginning again to display positive figures as early as 2000, Nissan, one of two most profitable manufacturers of the world with Toyota, contributed last year in the amount of 1.7 billion for the benefit of 2.48 billion released by Renault, against 1.3 billion a year earlier. In addition, dividends made since 2001 its French shareholder already amount to 549 million. "It was a fair return of things," said Carlos Ghosn, the man that Louis Schweitzer had appointed five years ago to lead the rescue of Nissan, and prepares to take his succession in a year at the head of the French manufacturer, while retaining the Presidency of the Group of Tokyo. "Renault has invested a lot of money and resources, agreed to bleed at the human level, sending in Tokyo of the experts who missed him," said Carlos Ghosn.

Nobody had given much chance of recovery of Nissan in 1999: Ford and Daimler had watched, without daring to take up the challenge, the record of this constructor whose debt peaked at $ 20 billion and whose volumes fell at the rate of 600,000 cars a year. Today, employees are given to the work, under the leadership of their charismatic boss, and its market capitalization is five times greater than that of the time. Relief that would have liked display Daimler, which is loaded in turn the difficulties of Chrysler, and Mitsubishi. "Many alliances lead ultimately to the destruction of value, is Carlos Ghosn.". For us, the alliance is a tool to optimize the performance of each of the two companies. Such flexibility is not possible in the mergers and acquisitions. "In the creation of value, Renault is not to complain. Today, "the capitalization of the group reached 15,65 billion, 4 billion before the operation Nissan.". "It took the weight, and it would now be very difficult to proceed with a hostile takeover bid on us," welcomes Louis Schweitzer.

The rescue of Nissan (at the cost of 21,000 positions and 5 closings deletions) is already far, the clash of cultures feared here or there is not produced: the two partners can focus on the continuation of their cooperation. After the definition phase, common platforms are beginning to come into action. Term, i.e. around 2010, both partners believe that each of these two joint bases will equip 1.5 million vehicles per year, or 50 of overall volumes of the alliance. Renault and Nissan agreed to acquire at the same time of a "common Bank" of 10 platforms, developed jointly and shared or not depending on the case, under a certain pragmatism which allows to navigate between the pitfalls. For mechanical organs, both partners want to count, still in 2010, 8 families of common engines and gearboxes 7 series.