Assignment #1

Analysis Report- Renault

Group#7

Renault
TABLE OF CONTENTS

1.

Brief Introduction............................................................................................................... 4
1.1 KEY FACTS............................................................................................................ 4
1.1.1 Other facts...................................................................................................... 4
1.2 FINANCIAL PERFORMANCE......................................................................................... 4
1.3 KEY EXECUTIVES..................................................................................................... 4
1.4 OWNERSHIP AND MAJOR HOLDERS.............................................................................. 4
1.5 CORPORATE SOCIAL RESPONSIBILITY........................................................................... 4
1.6 WORK FORCE......................................................................................................... 4
1.7 COMPANY HISTORY.................................................................................................. 5
2. Product and services delivered............................................................................................ 7
2.1 BUSINESS DESCRIPTION............................................................................................ 7
2.2 MAJOR PRODUCTS AND SERVICES............................................................................... 7
2.2.1 Passenger Cars............................................................................................... 7
2.2.2 Dacia.............................................................................................................. 7
2.2.3 RSM................................................................................................................ 7
2.3 MOTOR SPORT....................................................................................................... 7
2.4 RESEARCH AND DEVELOPMENT.................................................................................. 7
2.5 MARKETS AND SALES ACTIVITIES................................................................................ 7
2.6 ANNUAL OUTPUT.................................................................................................... 9
3. Global Presence.............................................................................................................. 11
3.1 LOCATIONS.......................................................................................................... 11
3.2 SUBSIDIARIES....................................................................................................... 11
4. Organization Structure...................................................................................................... 13
4.1 SIMPLIFIED STRUCTURE.......................................................................................... 13
4.2 OWNERSHIP STRUCTURE......................................................................................... 13
4.3 ORGANISATION CHART........................................................................................... 14
5. Competitors (and companys position)................................................................................ 16
5.1 RENAULT DIRECT COMPETITORS............................................................................... 16
5.2 COMPARISON OF RENAULT AND DIRECT COMPETITORS FINANCIAL RATIOS..........................16
5.3 COMPARISON OF RENAULT AND DIRECT COMPETITORS STOCK CHARTS.............................16
6. SWOT Matrix for development and competitiveness.............................................................18
6.1 OVERVIEW........................................................................................................... 18
6.2 STRENGTHS......................................................................................................... 18
6.3 WEAKNESSES....................................................................................................... 18
6.4 OPPORTUNITIES.................................................................................................... 18
6.5 THREATS............................................................................................................. 18
7. Problems faced in different countries..................................................................................20
8. Future Outlook (Business Expansion Plans)........................................................................22
9. Appendix........................................................................................................................ 23
9.1 TABLE................................................................................................................ 23
9.2 FIGURE............................................................................................................... 23

Company: Renault
EPGDIB|| Section B|| Group #7

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Date: February 9, 2015

Renault

Brief Introduction

Company: Renault
EPGDIB|| Section B|| Group #7

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Date: February 9, 2015

Renault
1. BRIEF INTRODUCTION
1.1

1.1.1

Key Facts

Other facts

Three brands: Renault, Dacia and Renault Samsung Motors

Renault is now present in 128 countries

Group sales worldwide: 2,6 million vehicles (year 2013)

An industrial network made of 42 sites, all ISO 14001 certified

50,5% of the group sales are made outside Western Europe

The 5 biggest markets of the group are: France, Brazil, Russia, Germany and Italy (S1 2014)

Revenues for the year 2013: 40,932 million

A workforce of 121,807 employees (as of December 31, 2013)

Renault Europe leader in electric vehicle sales, with a 37.1% market share (year 2013)

1.2

Financial Performance

1.3

Key Executives

1.4

Ownership and major holders

1.5

Corporate Social Responsibility

1.6

Work Force

Company: Renault
EPGDIB|| Section B|| Group #7

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Date: February 9, 2015

Renault

1.7

Company History

Company: Renault
EPGDIB|| Section B|| Group #7

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Date: February 9, 2015

Renault

Product or Services
Delivered and Annual Output

Company: Renault
EPGDIB|| Section B|| Group #7

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Date: February 9, 2015

Renault
2. PRODUCT AND SERVICES DELIVERED

2.1

Business Description

2.2

Major Products and Services

2.2.1

Passenger Cars

Europe

International

2.2.2

Dacia

2.2.3

RSM

2.3

Motor Sport

2.4

Research and Development

2.5

Markets and Sales Activities

Manufacturing Countries
Product

Company: Renault
EPGDIB|| Section B|| Group #7

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Date: February 9, 2015

Renault

Manufacturing Countries
Product

Company: Renault
EPGDIB|| Section B|| Group #7

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Date: February 9, 2015

Renault

Manufacturing Countries
Product

Table 1 : Product Table

2.6

Annual Output

Renault has been building automobiles since 1898. Today it is a multinational, multibrand group that sold more
than 2.6 million vehicles in 128 countries in 2013.
It has nearly 122,000 employees and 37 industrial sites, where it manufactures vehicles and powertrain parts.
To meet the major technological challenges of the future while continuing to pursue its profitable growth strategy,
the Renault group is:

Committed to sustainable mobility for all, with innovative solutions like electric vehicles;

Implementing an offensive strategy of international expansion;

Developing its partnerships: alliance with Nissan, cooperation with AVTOVAZ in Russia,Daimler and
Mitsubishi, agreement with Dongfeng in China;

Benefiting from the complementary ranges of its three brands: Renault, Dacia, and Renault Samsung
Motors.

Figure 1: Total Car Numbers in 2013

Company: Renault
EPGDIB|| Section B|| Group #7

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Date: February 9, 2015

Renault

Global Presence

Company: Renault
EPGDIB|| Section B|| Group #7

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Date: February 9, 2015

Renault
3. GLOBAL PRESENCE

3.1

Locations

Figure 2: Global Presence

3.2

Subsidiaries

Company: Renault
EPGDIB|| Section B|| Group #7

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Renault

Organization Structure

Company: Renault
EPGDIB|| Section B|| Group #7

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Date: February 9, 2015

Renault
4. ORGANIZATION STRUCTURE

4.1

Simplified Structure

Figure 3 : Simplified Organization Structure

4.2

Ownership Structure

Figure 4: Ownership Structure

Company: Renault
EPGDIB|| Section B|| Group #7

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Renault

4.3

Organisation Chart
Carlos GHOSN
Chairman and CEO

Dominique
THORMANN
CFO Chairman and CEO

Thierry
BOLLOR
Chief Competitive
Officer

RCI Banque

Clotilde DELBOS
SVP Group
Performance
and ControlRCI

Jos-Vicente
DE LOS MOZOS
EVP
Manufacturing

Jean-Michel
BILLIG
EVP Engineering,

Christian
MARDRUS
Alliance Managing
Director Logisctic

Farid
ARACTINGI
Audit, Risk
Management

Jean-Marc
BERLIOZ
Ethics Officer

Philippe
KLEIN
EVP Product
Planning, Programs

SEPEHRI
EVP
Office of the CEO

Florence
DE GOLDFIEM
Communications
Director GroupRCI

Laurens
VAN DEN ACKER
SVP
Industrial Design

Christian
VANDENHENDE
SVP Purchasing,
Chairman of RNPO,

Christian
DELEPLACE
Expert Fellow

Stefan
MUELLER
EVP Chairman
of Europe Region

Bernard
CAMBIER
SVP Sales &
Marketing France

Thierry
BOLLOR
Chief Competitive
Officer

Clotilde DELBOS
SVP Group
Performance
and ControlRCI

Clotilde DELBOS
SVP Group
Performance
and ControlRCI

Clotilde DELBOS
SVP Group
Performance
and ControlRCI

Jean-Pierre
VALLAUDE
SVP Engineering
Quality & IS/IT

Clotilde DELBOS
SVP Group
Performance
and ControlRCI

Jean-Michel
JALINIER

Clotilde DELBOS
SVP Group
Performance
and ControlRCI

President and
Managing Director
Renault Sport

Serge YOCCOZ
Group Strategy and
Development

EPGDIB|| Section B|| Group #7

Marie-Franoise
DAMESIN
EVP Human
Resources

Clotilde DELBOS
SVP Group
Performance
and ControlRCI

Nadine
LECLAIR
SVP Engineering
Project

Company: Renault

Jrme
STOLL
Chief Performance
Officer Sales &

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Date: February 9, 2015

Clotilde DELBOS
SVP Group
Performance
and ControlRCI

Clotilde DELBOS
SVP Group
Performance
and ControlRCI

Competitors

Company: Renault
EPGDIB|| Section B|| Group #7

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Date: February 9, 2015

5. COMPETITORS (AND COMPANYS POSITION)

GLOBAL PERSPECTIVE
In Renault's road race against rival Peugeot Citron to be France's dominant automaker, second place will have
to deux. Renault manufactures and markets small to midsize cars and light trucks under three brands: Renault,
Dacia, and Renault Samsung Motors (Renault holds 80%,Samsung 20%). The company owns Automobile
Dacia (Romania's leading automaker) and holds just under half of the Renault-Nissan Alliance (and 43% of
Nissan). It also participates in an alliance with Russian car maker AvtoVAZ and helps Germany's Daimler build
smart cars. Renault, which has become an international brand, operates nearly 40 manufacturing facilities in
more than 15 countries and sells into 118 nations.
The top competitors for Renault are the German Volkswagen, the French Peugeot, and the US General Motors.
General Motors General Motors (GM) manufactures cars and trucks, with brands such as Buick, Cadillac,
Chevrolet, and GMC. GM also builds cars through its GM Daewoo, Opel, Vauxhall, and Holden units. Financing
and insurance activities are conducted by Ally Financial (formerly known as GMAC), of which GM owns about a
10% stake. Throughout its financial woes, GM has received billions of dollars in loans from the Canadian and US
governments, negotiated concessions with labor unions, and jettisoned brands. The auto giant went through a
six-week bankruptcy protection in 2009; it issued an initial public offering and returned to the stock market in
2010.
Peugeot S.A. is the biggest rival of Renault to claim the top spot in the battle for auto sales in France. Peugeot
makes cars and light commercial vehicles under the Peugeot and Citron brands. France's best-selling auto
brand, Peugeot is among the top manufacturers in European passenger car and commercial vehicle sales. Also
part of Peugeot's automotive division are Faurecia (auto parts), GEFCO (transportation and logistics), and
Banque PSA Finance (financial services for dealers and customers). Other group products include motorbikes,
scooters, and light-armored vehicles. Peugeot makes most of its sales in Europe.
Volkswagen AG with cars named for climate patterns, insects, and small mammals, Volkswagen (VW) leads the
Continent as Europe's #1 carmaker. Along with Golf (Gulf Stream reference) and the New Beetle, VW's annual
production of more than 6 million cars, trucks, and vans includes such models as Passat (trade wind), Jetta (jet
stream), Rabbit, and Fox. VW also owns a garage full of luxury carmakers -- AUDI, Lamborghini, Bentley, and
Bugatti. Other brands include SEAT (family cars, Spain) and koda (family cars, the Czech Republic). Late in
2009 VW acquired a 49.9% stake in Porsche for about 4 billion (almost $6 billion) as the first step in combining
the two into an integrated car company.
All the carmakers are trying to have globally compatible megaplatforms and this would be something that would
help these companies taste success in the fast-expanding, ultracompetitive volume car manufacturing business.
Enormous economies of scale, lower development costs, faster times to market and the ability to build multiple
cars on one line are some of the other mouthwatering benefits of megaplatforms. Mastering this part of the
business could ultimately decide which automakers survive and which ones dont as pressures from customers,
competitors and regulators escalate.
PSA Peugeot Citroen , Renaults biggest rival in Europe looses to Renault here as it has nothing in its bag in
terms of megaplatforms.
Volkswagen AG leads all and is much ahead of rivals in the race of platform standardization , catching up at
second spot is Renault.
Among the closest to achieving VWs scale is Renault-Nissan. It aims to have 70 percent of its vehicles
underpinned by three common module family platforms for minicars, subcompacts and compact/midsize
vehicles by 2020. At that time Renault-Nissan is expected to be making more than 3.5 million vehicles on its
subcompact megaplatform, including the Renault Clio, and about 2.7 million cars using its compact/midsize
megaplatform, including the Nissan Qash-qai. This should cut purchasing costs 30 percent and engineering
expenses 40 percent, the automaker says.

Company: Renault
EPGDIB|| Section B|| Group #7

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Date: February 9, 2015

INDIAN PERSPECTIVE
Renault India Pvt Ltd is a wholly owned subsidiary of Renault S.A., France and currently offers five models in the
Indian market the premium sedans Scala and the Fluence, the luxury SUV Koleos, the SUV Duster and the
premium compact car, Pulse. Renault India also exports the Duster to a growing number of right-hand drive
markets.
Renault plans to stick to market share growth plan in India for now.
Renault has already left behind its European competitors in India namely Volkswagen whereas PSA group is still
in talks to enter India.
Renault is catching up with Chevrolet in India and needs just few more models to pull Chevrolet aka GM global
down the list.
The statistics show the rapid growth that Renault has seen by just one successful model so far in India
competing against brands which have large portfolios in India.
If we consider the Renault Nissan alliance suggests its already ahead of the global competitors in India and is
executing its global expansion strategy beautifully!

Company: Renault
EPGDIB|| Section B|| Group #7

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Date: February 9, 2015

Market Share Report * in FY 2013- 2014

Apr - June
Maruti
42.35%
Hyundai
16.40%
Mahindra
10.40%
Toyota
5.03%
Tata
5.96%
Honda
5.03%
Ford
2.62%
Chevrolet
4.02%
Renault
3.21%
Volkswagen
2.60%
Nissan
1.08%
Skoda
0.94%
Fiat
0.31%
HM
0.06%

July - September
41.70%
14.65%
8.68%
6.13%
6.08%
5.33%
4.58%
3.49%
2.13%
2.43%
1.05%
0.83%
0.52%
0.09%

Oct - December
46.29%
16.89%
9.69%
5.87%
5.83%
4.49%
3.96%
3.39%
2.34%
2.08%
2.00%
0.95%
0.52%
0.06%

* - Basis Sales Numbers

Company: Renault
EPGDIB|| Section B|| Group #7

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Date: February 9, 2015

SWOT Matrix

Company: Renault
EPGDIB|| Section B|| Group #7

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Date: February 9, 2015

6. SWOT MATRIX FOR DEVELOPMENT AND COMPETITIVENESS

6.1

Overview

6.2

Strengths

6.3

Weaknesses

6.4

Opportunities

6.5

Threats

Company: Renault
EPGDIB|| Section B|| Group #7

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Date: February 9, 2015

International Scenerio

Company: Renault
EPGDIB|| Section B|| Group #7

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7. PROBLEMS FACED IN DIFFERENT COUNTRIES

Company: Renault
EPGDIB|| Section B|| Group #7

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Strategic Plan

Company: Renault
EPGDIB|| Section B|| Group #7

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Date: February 9, 2015

8. FUTURE OUTLOOK (BUSINESS EXPANSION PLANS)

Renault exceeded its 2011-2013 objective and delivered 2.5 billion in cumulative free cash flow.

The group has set new ambitious yet realistic targets to be reached by the end of the plan Drive the
Change to be measured in 2017:

To generate 50 billion(1) euros in consolidated turnover

To reach an operating margin greater than 5% of turnover with a positive free cash flow each year

2014 - 2016 action plans:

Sustained renewal and expansion of the product line-up

International expansion and renewed growth in Europe

Improved competitiveness

Alliance synergies

Cost containment

The statistical data clearly points that non European new car sales are expected to rise by 50% and so to do
away with the ongoing analysts criticism of Renault of relying too heavily on European market, Renault has now
started giving high priority to the BRIC countries for future growth and thus delivering on its promise to provide
sustainable mobility to everyone.

Following are the key points on which Renault aims to focus on to keep the wheel rolling:
1. HEAVY INVESTMENT IN R&D
Keeping in mind todays ecological challeneges Renault is doing all it can to offer a product portfolio that
screams of being environment friendly and all this is possible because of heavy investment in R&D.
Renault aims to cut not only its customers carbn footprint by offering environment friendly vehicles but also cut
its own carbon footprint by adopting environmently friendly production techniques.
The Tangiers plant is an outcome of the heavy investment in research and engineering thereby doing its bit in
the design and manufacturing lifecycle of the automobiles.
The EOLAB Concept is yet another technical marvel and the Renault engineers are now focussing to ready this
concept for the masses.
Company: Renault
EPGDIB|| Section B|| Group #7

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Date: February 9, 2015

Debuting at the 2014 Paris Motor Show, the EOLAB explores ways to attain a lot of driving distance with ultralow fuel consumption. The automaker has combined around 100 technological and engineering advances to
make the EOLAB capable of 1 litre/100 km .
Primary goal of the EOLAB was to explore technologies to make the car affordable and able to be produced in
large numbers within the next 10 years. Designers and engineers identified and targeted three areas key to
solving performance and affordability goals; refined aerodynamics, weight saving and Z.E. Hybrid technology
(petrol/electricity power unit).

The EOLAB fundamentals

The EOLAB concept.

Company: Renault
EPGDIB|| Section B|| Group #7

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Date: February 9, 2015

2. REDUCTION IN PRODUCTION COSTS

Using monozukuri to reduce the direct cost of the vehicles by 4% a year
Renault launched the monozukuri approach in 2010 at four pilot sites and has now extended it to all Group
plants. Introduced at Renault thanks to Nissan, monozukuri consists in working on the entire value creation
chain, from design through to delivery to end customers, rather than function by function (purchasing,
manufacturing, logistics, delivery). The method will lead to a 12% cut in direct costs between now and 2013.
Making better use of our production sites
Renault is adjusting capacity in Europe and increasing production internationally. Renaults industrial sites
will benefit from the Alliance and the strategic cooperation agreement with Daimler. These factors will by
end-2014 bring about a 20-point increase in production capacity use at plants and improve the capacity use
rate to over 100% worldwide.

Company: Renault
EPGDIB|| Section B|| Group #7

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Date: February 9, 2015

3. STAY STRONG IN EUROPE & GET STRONGER WORLDWIDE

With every passing year the saturated west car market is forcing the automajor to turn its head to developing
countries .
Renaults priorities: Brazil, India and Russia
Brazil is expected to become Renaults second-largest market, Russia its fourth up five places and number
one including Lada sales and India its eleventh, up 20 places.
Our country itself has seen an aggressive strategy from Renault in the last two years with launch of 5 new
models and one of them being a massive hit, the mighty DUSTER.
The company plans to launch many cheaper models in India inclusing the much hyped Renault twingo using the
same production line that Nissans Datsun uses to produce GO.
Clearly, Renault was keen to move on in India after the Logan debacle when nothing worked according to plan.
The company, however, believes it was a useful learning experience especially from the viewpoint of thinking
local for the local market.
It has already made known that it is working on a sub Rs-3 lakh compact, which will compete with the wellestablished Maruti Alto and the Hyundai Eon.

Renault has been number 1 in France for the last 15 years and plans to continue its streak there by launching
relevant models and also to repeat the same in new markets.
The car market in Europe is also seeing a strategic shift towards smaller cars and Renault is doing all it can to
cater to the changing needs and demand patterns.
The Duster success story,making India the fourth largest car market for Renault

India has become the fourth biggest market for Renaults compact sports utility vehicle Duster globally, with
sales touching 85,974 units in the country, since the launch of the vehicle in 2012.
The combined production of Renault and Dacia branded Dusters has already crossed one million vehicles
worldwide.
Company: Renault
EPGDIB|| Section B|| Group #7

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Date: February 9, 2015

The vehicles were launched across international markets four years ago.
Currently, Russia is the biggest market for Duster globally. The French car major has sold 1,51,633 units of the
SUV in that country.
This is followed by France with 1,45,612 units (where it is badged as Dacia) and Brazil with 1,17,303 units in
third spot. Germany is the fifth biggest market for the SUV after India, where it sold 70,159 under the Dacia
badge.

Company: Renault
EPGDIB|| Section B|| Group #7

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Date: February 9, 2015

Company: Renault
EPGDIB|| Section B|| Group #7

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Date: February 9, 2015

9. APPENDIX

9.1

Tab

Table 1 : Product Table.......................................................................................................................... 7

9.2

FigureY

Figure 1: Global Presence..................................................................................................................... 9

Company: Renault
EPGDIB|| Section B|| Group #7

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Date: February 9, 2015