Renault: The Road Ahead

By Min Breton


Recently, Renault announced their new operational director, Tavares Carlos, as well as their plans for the next few years. Their intention is to make Renault an extremely 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 looking to incorporate solar panels to the roofs of their factories in France. This challenge has turned out to be one of the largest in the auto industry: more than 450 000 square meters will be covered, having a capacity of 60 MW (the equivalent of a medium consumption of a city with 20 000 inhabitants).

The undertaking will begin in June and is anticipated to be completed in February of next year. They hope to lower the level of pollution in the environment. A second project similar to this was started by Seat and they have solar panels installed on their factories in Spain.

The firm also wishes to take care of the problem of the industrial espionage. Renault is doing their best to become a more appealing brand that sells high end cars. The industrial espionage scandal affected the reputation of the company but this is only one of the difficulties. The top people of Renault also considers their existing car designs are a bit out of step with todays consumers and they need to improve on it.

As soon as Renault brought Laurens van den Acker in as a principal designer, sweeping changes were observed in the new concepts of Renault. The Clio is predicted to be the first car under Renaults new perception with a redesigned body and engine as well as state of the art electronics.

Product sales of medium to high end cars for Renault have dipped somewhat from 150,000 in 2005 to 100,000 last year. For the time being, Renault must work on the cars that will generate the most money and wait for the new models that will hit the streets in 2014-2015. The French media stated that Tavares needs to endeavor to even the disparity between the partnership with Nissan as Nissan has sold more than four million cars while Renault has sold just 2.6 million cars.

Renault has a huge problem; the company is not found in China and this problem must be solved in 2013-2016. Moreover, the business has never made a substantial mark in the US either. Although they currently dont have any plans to reenter the US market, they've been wanting to maximize their positions in Russia and Brazil. The Indian market was a catastrophe but the French manufacturers are resolved to bring new models there and they are planning to build thousands of models especially for this market.

Therefore, for Renault to attain their goal of selling an extra 400,000 cars in the next few years, they will need to continue to innovate and improve the designs on all their cars.




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