23/08/2010 Take Home Resit Examination .Meriem Be Amor |

EDHEC Business school. | Organisational Control |

Introduction:
In the spring of 2002, Matra-Automobile found itself at a crossroad: after the exceptional success story of the Renault Espace, which lasted for over 15 years, the situation of Matra Automobile is critical: The Lagardère Group has announced its intention to withdraw from the automobile business, Renault has decided to transfer the manufacturing of the new Renault Espace to one of its own factories, the commercial prospects of the Avantime are quite uncertain and the launch of another product (the m72) has not yet really been decided. What a paradox! This company, which had broken all the profitability records of its sector, is close to bankruptcy.
Despite a profitability track record that was exceptional for the sector (10% gross margin for several years running) and which made Matra Automobile the most profitable subsidiary of the Lagardère group and one of the most profitable car manufacturers in the world, potential buyers are not showing up. This situation, described in the case, will result in a disaster a few months later: the manufacturing of the Avantime will cease after only 5131 units. The Matra Auto factory will close and its employees will be laid off.

I will introduce in this paper the history of the Renault Espace car pioneer and its huge commercial success, but mostly manufacturer marginal player, Matra Automobile, previously best known for its small sports series for its Concept Car success. From the unexpected growth, the transfer of production to Renault, then the failure of the Avantime which will cause Matra Automobile in the fall. History of Matra: The Matra group, primarily focused on the defense sector, becomes an owner in 1964 of a small car company allowing him to use this area as a vector of its image and its technology to make itself better known to the general public. MATRA SPORT SARL is created.