Renault Discloses Its Medium Term Strategy

By Andrew R. Ford


Recently, Renault introduced their new operational director, Tavares Carlos, in addition to their plans for the next few years. Renault is assertively aiming to develop a strong brand identity in Europe and America and be competitive in the SUV niche in China.

On the other hand, Renault is trying to become an environmentally friendly company, so they are mounting solar panels on the roofs of their factories in France. This challenge has become one of the greatest 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 get going in June and is expected to be completed in February of next year. Their goal is to reduce the consequences of pollution and save on electrical costs. One more project similar to this was undertaken by Seat and they have solar panels set up on their factories in Spain.

The company also wishes to resolve the problem of the industrial espionage. Renault must become an attractive mark, and they will want to sell many expensive cars, and to improve its image in front of the clients, where Nissan already works well. The scandal caused some injury to their image but it is only part of their present woes. The top people of Renault also views their existing car designs are a bit out of step with todays consumers and they need to improve on it.

When Renault officially appointed Laurens van den Acker as their new chief designer, radical improvements happened in car designs. The latest 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.

Furthermore, Renault sold 150 000 cars of medium and superior class in 2005 and the sales from last year scarcely got over 100 000. The new line of Renault cars are not likely to hit the market before the 2014-15 season, they must do their best to exploit those cars that sell well in their current line. The French media said that Tavares needs to make an effort to even the difference between the partnership with Nissan as Nissan has sold more than four million cars while Renault has sold just 2.6 million cars.

An additional problem that Renault has is the lack of presence in China but are trying to fix that between 2013 and 2016. Moreover, the business has not made a considerable mark in the US either. Even though they currently dont have any plans to reenter the US market, they are looking to maximize their positions in Russia and Brazil. As for the Indian market, they happen to be struggling to some degree but continue to produce new cars that should appeal to Indian consumers.

Therefore, for Renault to attain their goal of selling yet another 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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