The brand Renault was created in 1898 by three French brothers: Louis, Marcel and Fernand Renault. The first Renault car, the Renault Voiturette 1CV was sold to a friend of Louis' father after giving him a test ride on December, the 24th 1898. His friend was so impressed by this tiny car, how it ran and how it climbed the streets that he bought it.
The brand became rapidlyknown thanks to automobile racings. In fact, their cars were high performance and won competitions.
Renault is born.
Renault factories chose mass production and during the First World War, the company contributed by manufacturing trucks and ambulances.
During the eighties, Renault knew a good growth thanks to an extension of its range and its entrance in the automobile racing “Formule 1”.During the nineties, the company continued to innovate and to renew its range with Megane or Laguna. Its reputation was strengthened by its success in Formule 1.
Also, with the buyout of Dacia and Samsung Motors, Renault accelerated its internationalization.
Moreover, in 1999, the company got into in Nissan’s capital.
Since 2005, the new chief executive Carlos Ghosn has new plan for thecompany. He wants to become the most profitable European group.
The group chose to position on emerging markets and since 2008, has given priority to the launching of electrical vehicles.
Renault’s market shares:
Renault’s headquarters are in Boulogne-Billancourt in France and employ 121 422 people.
The company recorded a turnover of 33,718 Million during the financialyear (2009), a decrease of 10% compared to the financial 2008.
In 2008, Renault sold 2,382,243 vehicles and in 2009, 2,309,188 vehicles were sold all over the world. That represents an increase of 4% comparing to 2008. This is less than the global increase regarding the automobile world market.
Sales repartition in 2008
Brands | 2008 |
Renault | 2019274 |
Dacia |258472 |
Renault Samsung Motors | 104484 |
Total | 2382230 |
2. Renault SA SWOT Analysis
STRENGTHS | WEAKNESSES |
* 3 brands : Renault, Dacia, Renault Samsung Motors * Attractive prices * Increase of sales thanks to “prime à la casse” of 14,9% in France in 2009 * Positive free cash flow *Strategy of reducing costs * Products adapted to the demand * Fifth worldwide constructor and second on the French market * The company is present on a large market : 118 countries * 100% of Renault industrial sites are now ISO 14001 certified * Renault is the European leader on the LCD market * Products’ quality thanks to the RenaultExcellence Plan. * Really good reliability of some products like Renault Laguna * Renault Samsung Motors is a reference on the Korean Market. * Local development of cars to respond closely to the local market * Increase of Sales in France, Germany, Romania, Morocco, Asia * The low cost brand Dacia which is in the top 10 in France *Others activities: Banks, multi brand automobile repair, vehicle maintenance, vehicle rentals across France * Priority given to future production of electric vehicle * Attractive prices of electric vehicles * Great communication thanks to mechanic sports (Formule 1) and television (in movies or sitcoms) | * Highly depend of the European demand andmarket * Trouble to get into the market of sedan * Big dependence of certain sales like Megan * Commercial failures with Velsatis * Scandals of Renault management and stress at work (workers committed suicide) * Subcontractors on strike which paralyze Renault’s production * Loss of distributors and job cuts * Strategy of reducing costs *...