Ever since the thwarted bid by T. Boone Pickens to obtain seats on the board of Koito Manufacturing, the activities of foreign investors in Japan, and of foreign CEOs of Japanese companies, have generated controversy. Foreign assertions of noble intentions are often distrusted by Japanese, while frustrations voiced by Pickens in 1989 are still keenly felt today.

This article analyses the industrial activity of the French automobile company Renault during its first two decades in Spain. A first section examines the negotiations which concluded in the concession of the Spanish license and the establishment of a Spanish licensee society (FASA). A second part analyses the early years of FASA, in which it experienced a sustained growth overshadowed by product quality and management problems. We show how FASA's main phase of expansion coincided with the French head office's control, effective from 1964 on. The last part of the article summarizes some of the factors contributing to the success of Renault in Spain: such as adapting to local market conditions, establishing a certain degree of freedom in management and a more flexible export policy.