Negotiations
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Summary of Final Outcome
Team Nissan and Daimler-Chrysler agreed to the following terms: Daimler-Chrysler to pay 3.75bn in cash, 3.75bn in debt for a 25% stake in Nissan. CEO will be from Nissan ranks whereas the COO will be from Daimler-Chrysler. BOD split; 8 Nissan, 8 Daimler-Chrysler, (8+2) Joint Committee. No layoffs initially in Japan with Daimler-Chrysler agreeing to sponsor early retirement packages and worker retraining to offset any future layoffs resulting from the merger.
Although unsuccessful in its bid for Nissan; Renault, CGT and the French Government agreed to cooperate jointly from the outset of the negotiations. This was formalized in a consensus to approach the talks as a coalition, focusing on shared interests and goals. At the end of the process, Renault in fact concluded the negotiations successfully, having not compromised its BATNA and was supported unequivocally by the French Government. Nissan's last minute radical positioning and Daimler-Chrysler's unrealistic concessions to Nissan were identified as Renault's primary reasons for backing off from talks during the final round of negotiations...