Renault: The Road Ahead

By Chester Thibodeaux

Not long ago, Renault approved their new Operational Director, Tavares Carlos and furthermore, they introduced their plans for the next few years. Their aim is to make Renault an exceptionally strong brand in Europe and in America plus have a strong presence in China in the SUV category.

They are also being aggressive with eco-technology since they are planning to put solar panels to the roofs of their factories in France. It 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 job will get going in June and is anticipated to be completed in February of next year. Their aim is to lessen the impact of pollution and save on electrical costs. One more project similar to this was started by Seat and they have solar panels installed on their factories in Spain.

The company also wants to take care of the problem of the industrial espionage. Renault is doing their best to be a more desirable brand that markets high end cars. The espionage scandal has generated some damage to their image however it's only part of their challenges. The top brass at Renault additionally admits to outdated products and unhip image.

When Renault brought Laurens van den Acker in as a head designer, radical changes were observed in the new concepts of Renault. The modern generation of Clio will almost certainly show us a work of two years and the typical opinion is that Renault excels on the car electronics and has improved on many other features as well.

Additionally, Renault sold 150 000 vehicles of medium and superior class in 2005 and the sales from last year scarcely got over 100 000. Meanwhile, Renault should work on the cars that earn the most money and wait for the new models that will hit the streets in 2014-2015. The French media point out that Tavares must seek to equilibrate the two partners of the French alliance, as Renault sold 2.6 million cars last year, while Nissan sold more than 4 million.

An additional issue that Renault has is the lack of presence in China but are trying to fix that between 2013 and 2016. Moreover, the company has never made a substantial mark in the US either. There are no apparent plans about the American markets but Renault will try to consolidate its position in Russia and Brazil. The Indian market was a failure but the French manufacturers are determined to bring new models there and they are planning to build thousands of models especially for this market.

In summary, the goal of the company 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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