Solid and ambitious, the Renault Commitment 2009 plan, revealed by Carlos Ghosn on February 2006, mobilizes the entire company around three strong key commitments: quality (position New Laguna among the Top 3 models in its segment, in terms of product and service quality), profitability (achieve an operating profit margin of 6% in 2009) and growth (sell an additional 800,000 units in 2009, compared to 2005). Renault's ambition is to become the most profitable European volume car company. The group now owns plants all over the world. Renault is present in 118 countries, and has had worldwide dimension thanks to its alliance with Nissan, its acquisition of Romanian manufacturer Dacia, the creation of the South-Korean society Renault Samsung Motors and its strategic partnership with AvtoVAZ in 2007. Renault is also the most sold in France. It is ranked ninth in the global car market. Renault was the most sold brand in Europe several years ago, but relinquished it to Volkswagen.
[...] Kia and Ssang Yong : the Russian company SOK started the assembly of KIA Spectra in Izhevsk with a planned annual output of 40,000 vehicles. SWOT Strengths 100,000 Renault vehicles sold in Russia in 2007, this is an increase of almost 40%. Communication is large-scale. Renault is an innovative brand. Indeed, it developed 22 news cars in 2007. Prices are medium. The range of cars is young. Indeed, the average was 2.2 in 2008 compared to 3.8 in 2005). Koleos (4X4) and Logan (the second most sold car in Russia) are Renault's star models. [...]
[...] To diversify its long-term funding sources, Renault SA is stepping up its presence in the domestic bond market in Japan. It has already made seven Samurai issues (yen-denominated bonds issued in Japan by non-Japanese entities), the latest in January 2008. Cash flow strategy generating by Renault's subsidiary: In the past few months, Renault tried to make a cash-flow strategy by reducing its production costs and by trying to sell the car directly right after the production stage. Renault Share Dividend for the exercises of and 2007 is 2.40 euros euros and 3.80 euros a share respectively. [...]
[...] In 2005, faced with the deterioration of the Russian manufacturing market and the increase in the import of foreign cars of the market value in 2005), the government responded not by raising import duties again, but by passing a measure (166 Decree) intended to persuade foreign car manufacturers to revive the Russian car industry by setting up local assembly plants. The Russian government took the decision to drastically decrease import taxes for automotive components imported by OEMs (Original Equipment Manufacturer). [...]
[...] New competitors on the Russian automobile market As Russia is an attractive country registering huge growth in the past few years and containing ample natural resources, new competitors or existing competitors could develop their car products in Russia or develop strategic partnerships or subsidiaries like Renault. Moreover, Russian legislation encourages automobile manufacture within the country by supporting the setting up of new plants of production rather than importing new vehicles (the government has imposed a 30% duty rate on imports). [...]
[...] Renault is the seventh biggest foreign car manufacturer and its share on the Russian market is about Note about Nissan The partnership with Nissan has not been considered for this analysis because Renault has just a stake in Nissan and does not influence its strategy and sales; moreover, Nissan sales are not included in the Renault Group. Problem Statement Since 1998, Renault has been operating in the Russian market which has witnessed a huge growth and growing demand in new cars. [...]
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