tcc.dev.solvaris.com/index.asp?n=193&sid=193&article=15 -
[Cached Version]
Published on: 11/11/2003
Last Visited: 6/12/2004
One on One: Louis Schweitzer by Paul A. Eisenstein
...
One on One: Louis Schweitzer
One on One: Louis Schweitzer
...
Facing one another for the first time, Renault Chairman and CEO Louis Schweitzer spoke no Japanese.Nissan President and CEO Yoshikazu Hanawa spoke no French.But the two men needed to talk serious business if the French carmaker was going to complete its bid to invest more than $6 billion in the troubled Japanese company.As it worked out, Schweitzer and Hanawa found two common languages: English and automobiles.The deal came together, and today, Renault is Nissan's largest shareholder, and the architect of an aggressive turnaround plan aimed at reversing a decade's worth of red ink.
It isn't the first time 57-year-old Schweitzer has faced a challenging turnaround.A former French government official, he was lured to Renault in 1987 at a time when the carmaker's own future was in doubt.But after assuming the company's top post in 1992, Schweitzer launched an aggressive effort to rebuild Renault.He began slashing costs, convinced the French government to privatize the automaker - though the state still holds a 44.2-percent stake - and perhaps most important of all, Schweitzer launched an aggressive product development program that has positioned Renault as one of the most creative forces in the European car market.By combining forces, Renault and Nissan now hope to survive an impending global shakeout in the auto industry.
A lawyer by training, and a relative of the legendary African man of mercy, Dr. Albert Schweitzer, Louis Schweitzer has a calm demeanor and a straightforward manner.He took time to discuss the Nissan deal, the auto industry's shakeout and other issues during a meeting with TheCarConnection.com Publisher Paul A. Eisenstein at the Geneva Motor Show.
TCC: It is now nearly a year since you reached an agreement with Nissan.How are things going so far?
Schweitzer: Fairly well.There are always details that could be better…but all in all, it has lived up to expectations.We have proved you can bring together two companies in two different countries with different cultures.
TCC: Has it created a strain for Renault, investing so much time, money and resources?
Schweitzer: We did not go there with a flock of people.We sent less than 20 people to Nissan from Renault.That was a small drain, (though) it does create an extra workload for a lot of people.
TCC: What is in the deal for Renault?
Schweitzer: Clearly, we at Renault are very French.Our scope has been small.
...
Schweitzer: That was probably the right decision for them at the time because they had not yet addressed the issue of the Chrysler (merger).If Nissan had come up a year later, they probably would have done the deal.
TCC: You are reportedly going after other possible deals, such as Korea's Samsung.Are there more on the horizon?
Schweitzer: We are still a smaller company and feel we should not overextend.
...
Schweitzer: It would be a bi-national group, meaning two companies, not one.
...
Schweitzer: The Internet may change the cost of entry into markets, but today, the cost is too high.
TCC: You have said, in recent months, that you will use your Romanian nameplate, Dacia, to gain entry in emerging markets.But recent media reports suggest the brand might become a super-low-cost nameplate for Europe and other established markets.
Schweitzer: We have not changed our position. (Those reports) were a lapse by some at Renault.
...
Schweitzer: The first products will come to market in Japan in 2002, a successor to the Micra (minicar).Afterwards, that will be used by some Renault products.By 2010, the full range of products (of Nissan and Renault) will share platforms.
TCC: No deal has guaranteed results.What is your biggest fear for the relationship between Renault and Nissan?
Schweitzer: I do not see the bottom falling out of the Japanese economy.
809 online sources [ view sources ]
Profile is not claimed [ claim profile ]
