Edwige VALLANCIEN
FIB, ACI-2

RENAULT

Renault is one of the Europe largest car manufacturer. Holding a 44.3% stake in Nissan, it became the fourth largest automobile company of the world behind General Motors, Ford and Toyota. 70% of its sales volumes come from western Europe and 30% from its expansion outside (Asia, Russia...) Renault uses two different kinds of strategies to improve itself on car markets (according to the country’s culture).

Renault in Europe

Renault’s strategy.

French car maker Renault sees its net profit slumps because of a thin margin and high costs. There are more precisely four reasons from which results this decrease on net profit :

❖ A decrease on vehicules sales (4 %) ❖ An increase on raw material costs ❖ Higher oil prices ❖ Exchange rate movements ❖ An increase on manufacturing costs ❖ European pollution norms too costly

Renault has charted a four year program called Commitment 2009 with 3 key objectives to become the most profitable European volume car company.

❖ The first commitment is the « quality ». Renault will change its image in order to be qualified as a brand of quality. The laguna will be in the top three in terms of product and service quality.

Actualy, the company made progress with a decrease of 40% in the 12-month incident rate and of 30% in costs.

And to improve its image of quality, after-sales services are an obligation. Nowadays renault makes advertisments about its garages « : who knows more your renault than renault ? ».

❖ The second commitment is about profitability, aiming an operating margin of 6%. This objective would be reached thanks to a costs reduction, an improved profitability of international operations and a strong result in the european market.

❖ The fird commitment is to increase the sales volume by 800 000 cars, including european and outside markets. Logan will be