Présentation Renault

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TABLE OF CONTENTS

Presentation…………………………………………………………………

Company’s strategy……………………………………………………………

a) Global strategy……………………………………………………

b) SWOT…………………………………………………………………

c) Competitors………………………………………………………..

Parts & accessories logistics procurement department…

My assignments………………………………………………………………….

1°) Presentation

Renault is a French automobile manufacturer founded in 1898 by Louis, Marcel and Fernand Renault. During the past, Renault acquires an international reputation through its sporting victories and firstly specialized in construction of particular vehicles and taxis. While the First World War breaks out, the company produced new products such as trucks, tanks and airplane engines. Then Renault stood out well thanks to innovation and took advantage of the passion for the Roaring Twenties’ cars. After the Second World War, the company was formally nationalized as “Régie Nationale des Usines Renault” and became privatized again in the 1990’s.

Since 1999, the company is closely linked with the Japanese manufacturer Nissan. The Alliance seeks to maximize economies of scale while preserving the distinct identities of brands and corporate cultures. Thanks to it, the group is ranked the fourth-largest automotive group in the world. In 2002, the aim of the Renault-Nissan Alliance was strengthen ties between them. Moreover Nissan obtained a second seat on Renault’s Board of Directors. At the same time, Renault took a 51% ownership interest in the Romanian manufacturer Dacia. Renault has about 30 manufacturing sites for its automotive business.

In 2014, the Renault group sold more than 2, 7 million vehicles in 125 countries, which represents an increase of 3, 2%. It has over 117 000 employees and produces vehicles and mechanical products at 36 manufacturing sites. The company has 3 brands: Renault, Dacia and Renault Samsung Motors.

• Renault is present in 12 countries and has more than 12 000 points of sale
• Dacia is sold in 44 countries in Europe, Northwest Africa and also in Turkey. 3 million customers has been attracted by the brand since 2004.
• Renault Samsung Motors, is the group's local brand. It is sold in South Korea (82 123 vehicles sold) and its product line covers the middle-end and high-end market segments.

The Group’s activities have been organized into two main business sectors, in more than 120 countries:  

• Automotive, design, manufacturing and distribution of products through the sales network (including the Renault Retail Group subsidiary):  

• New vehicles, with three ranges – passenger cars, light commercial vehicles and electric vehicles – marketed under three badges: Renault, Dacia and Renault Samsung Motors (except electric vehicles, which are exclusive to Renault). Vehicles manufactured by Dacia and RSM may be sold under the Renault badge in some countries,
• used vehicles and spare parts,
• Renault powertrains, sold B2B;

• Various services: sales financing, leasing, maintenance and service contracts.

Electric Vehicles markets continued to grow strongly everywhere despite slower-than-planned infrastructure development. The global market reached over 160,000 units in 2014. Electric vehicles are growing 10-20 times faster than hybrid cars in their day. The Alliance crossed the 200,000 electric vehicle mark and became the market leader by selling more than one electric vehicle for every two sold worldwide. Renault has sold 56,400 electric vehicles worldwide since its first model, the Kangoo Z.E., was put on the market in October 2011.

2°) Company Strategy

1. Global Strategy

The company is working to attain three objectives:

• Secure Renault’s position as the leading French automotive brand in the

world.

• Position Renault sustainably as the second-largest brand in Europe;

• Build on Dacia’s position as the leading brand in its category.

In 2011, Renault decided to set up a plan named “Drive the Change” with two priorities: revive sales growth, and generate positive free cash flow.

• First Stage : 2011 – 2013

During this step, Renault started to make major transformation.  Two objectives were set: firstly, reach a sales volume of 3 million vehicles in 2013, secondly, 2 billion€ of cumulative free cash flow ( Free cash flow is a measure of financial performance which represents the cash that a company is able to generate after laying out the money required to maintain or expand its asset base)

Before the plan in 2010, Renault was essentially a European car manufacturer whereas in 2013 Renault’s sales outside Europe have grown from 37% to 50%.

With the exception of Algeria, where Renault was already the maker of one in every four cars sold, Renault has increased its market share in all emerging countries where it was present;

• Second Stage : 2014 – 2017

After the success of the first stage, it is time for a new phase of acceleration:

• Renault have renewed its product range since 2014, in particular with the new Twingo and Trafic, as well as the Megane and Scenic’s successors. These vehicles have been based on a common platform with 3 million vehicles on the C and D segments. At the same time, the company has increased its market coverage with a complete range dedicated to crossover vehicles, an entry level vehicle exclusively for India and South America and also new utility models through the international market (Pick-up).

• The international expansion and its ambition in Europe is another important action, indeed after the success of the first stage, Groupe Renault aims to gain more than 8% market share in Brasilia and Russia, more than 5% in India.

Moreover, China represents another major priority in the coming year with the setting up of the 150 000 vehicle capacity plant in Wuhan.

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