Renault: The Road Ahead

Posted by on April 30, 2012 | No Comments

Recently, Renault unveiled their new operational director, Tavares Carlos, and also their plans for the next several years. The mission of the new director is somewhat challenging: he has to make the Renault brand a powerful name in both Europe and America but the company also wants to penetrate the Chinese market, especially in the niche of SUVs.

Renault is also assertively introducing eco-friendly technology to their plants, like solar panels attached to the roofs at their French factories. The idea is the largest mission of its sort in the auto industry with more than 450,000 square meters of solar panels producing 60 megawatts of electricity or enough to power a town with a population of 20,000.

The undertaking will get started in June and is anticipated to be completed in February of next year. They aspire to reduce the level of pollution in the environment. There was a similar project initiated by Seat in their Spanish factories.

Renault is also focusing to fix their image pertaining to industrial espionage. Renault is making every effort to be an appealing brand for the general public and do their best to promote high end cars. The industrial espionage scandal impacted the good name of the company but this is only one of the problems. The top management of Renault also believes their current car designs are a bit out of step with todays consumers and they need to improve on it.

Once Renault brought Laurens van den Acker in as a chief designer, radical changes were observed in the new concepts of Renault. An illustration of this will be the next generation Clio with its state of the art electronics and improved body and engine.

Product sales of medium to high end cars for Renault have dipped to some degree from 150,000 in 2005 to 100,000 last year. For the time being, Renault must work on the cars that bring in the most money and wait for the new models that will hit the streets in 2014-2015. The French media said that Tavares needs to make an effort to even the difference between the partnership with Nissan as Nissan has sold more than four million cars while Renault has sold just 2.6 million cars.

Another issue that Renault has will be the lack of presence in China but are trying to fix that between 2013 and 2016. In addition, they do not have any sort of presence in the United States since they departed decades ago. There are no clear plans regarding the American markets but Renault will try to consolidate its position in Russia and Brazil. As for the Indian market, they are struggling somewhat but continue to produce new cars that will certainly appeal to Indian consumers.

In conclusion, the goal of the firm is to grow the annual sales by more than 400 000 units but this goal can only be achieved if the company brings new design innovations with their existing and upcoming line of cars.

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