Consumer Culture - Renault and Society

RENAULT

AND

THE FRENCH

SOCIETY

Zhufang C - Stefania D - Maxence F

Charlotte L - Guang L - Kuldeep S

Agenda

1

Pre – World

War II

1898-1945

2

The Thirty

Glorious

1945-1973

3

Modern

Years

1973-1996

4

New Era

1996-2013And Beyond

Pre-War World II (1889-1945)

1936 - Worker strikes

1914 - Tank support for France

during WW I

1934 - Largest factory in France (32000

workers)

1945 – Collaboration with Germans

During WW II

Pre – World War II (1898-1945)Milestones

1905 1912 1913 19141903

1.

• tank support for

France during WW1

• 1200 cars/year

• 800 workers

• to make a car takes

1 year

• measure of working

time

• 1st order for taxis & buses

• 30% taxis and buses in

Paris are Renault

• 1st labor strike

• 4480 cars/year

• 10% of the French

market

• first assembly

line

1922

1905 191219031934 1936 1945

•worker strike

•Renault will always be a symbol

for working class and union

• largest factory in France

• 32000 workers•collaboration with Germans

in WWII

Pre – World War II (1898-1945)

1898

• Renault

Voiturette is

launched


• High accessibility: new era of cars

instead of « horses » leads to increase

accessibility in different regions and

economic development;

• Increased productivity: mass

production and Taylorism techniques

raise productivity;

• Automotive industry in France: the

fast-growth of Renault helps the

automotive industry to become an

important segment in France;

ECONOMIC ENVIRONMENT

• Invention of first transmission

gear car: this layout of design was

used until the 1970’s in the car

industry;

• Introduction of the assembly line:

enabled Renault in mass production;

TECHNOLOGICAL

ENVIRONMENT

POLITICAL ENVIRONMENT


• World War I: Great support to the French army by providing it with

munitions, airplane engines and the famous FT-17 tank;

• World War II: France is occupied by Germans and cars are forbidden

to be produced, so to survive Renault produces army trucks for the

German army;

• Collaboration accusations: At the Liberation, Louis

Renault, founder of Renault, is accused of having collaborated with

the enemy and jailed;

• Seduction: cars become an object of seduction and are related to a

certain “art de vivre”;

• Conveyance: at the same time, a part of the consumers are looking

for a practical and affordable car, so Renault launches Juvaquatre;

• Agricultural: Renault increased its scope as it realized the need of

agricultural machinery in the society because major population was

engaged in farming.


CONSUMERS


1945 - Nationalization

1945 – Collaboration with Germans

During WW II

The Thirty Glorious (1945-1973)Milestones

1960’s – The production doubles

(from 2500 to 5000 cars/day

1955 – Pierre Dreyfus is named CEO

1973 – Oil Crisis

1947 1952 1968 19731945

First oil shockPierre Lefaucheux

becomes CEOPierre Dreyfus is

named CEO

4CV: family

car for holiday

33 days of workers

strike

The Thirty Glorious (1945-1973)

1961

R4: the affordable

car for everyone


• High Accessibility: small cars

popularization stimulates

commerical and economic

development;

• Car Industry: Raising car

productivity raises the GDP in

France;

• Oil Crisis: led to greater interest

in renewable energies;


• Nationalization: in 1945 the

Limited company Renault

becomes “Régie Nationale des

Usines Renault”;

• May 1968: Renault faces big and

long-lasting strikes organized by a

minority of communist workers

who ask for unprecedented

welfare benefits. Those lead to

agreements between both parties.

POLITICAL

ENVIRONMENT


• Emergence of new social groups, new social roles, standards

and status: Analyzing the emergence of the different classes in the

society and their materialistic nature Renault started focusing on

innovation in cars in order to fulfill demands and to compete with

other companies (VW and its Beetle).

• Labor unrest in France: lead Renault to introspect which resulted

in better working rights and wage hike for workers.

SOCIAL ENVIRONMENT


• New businesses: Renault helps national

reconstruction and promotes work by building

utility vehicles, with which French people can

develop their businesses.

• The popular car: the idea is more actual than

ever so Renault launches 4CV, which becomes

accessible to all and is therefore a big success.

• Different needs: In response to the increasing

customer demands, Renault launches R16, a

more stylish and technologically advanced.

• Oil crisis: Renault was quick to realize and fulfill

consumer’s need of fuel-efficient car during 1973

oil crisis.

CONSUMERS

Renault utility vehicle

Renault 4CV


1996 – Privatization of the company

Modern years (1973-1996)Milestones

1970’s – Introduction of JIT production 1977 – Formula 1 sensation

1984 – After the economic crisis

a recovery plan is set

•Heavy Loss

• Privatization

1980 1981 19841972

F. Mitterrand President

1981-1995

1996

R5 economic car for

young people

Business

troubles• Heavy Loss

• Privatization

• Upmarket car: R 25

• Monospace car: Espace

Modern Years (1973-1996)


• Recovery plan (after the

economic crisis): Renault

puts in place a recovery plan to

stimulate its economic growth

in France.

• After the lack of success of a

Volvo fusion, Renault opens

its capital.


• During 14 years: deep intimacy

between the French socialist

government of F. Mitterrand and

the state-owned company

Renault (see Appendix1).

• Preparation of Renault

privatization: with new

Chairman & CEO Raymond

Lévy.



• Introducing just-in-time

production: largely decreased

the stock and allowed better

utilization of resources.

• First use of turbo engine in

Formula One: Renault RS10

was the first Turbocharged car

to win Formula One; later, this

technology was applied to other

mass production car models;

TECHNOLOGICAL

ENVIRONMENT

• Negative influence of the

industrial revolution: more CO2

emission (140g/km) & less

recyclable material (5%).

• Early adoption of eco-thinking:

Technological breakthroughs

allow for an early integration of

innovative solutions (energy

saving) on Renault plants.

• First steps of sustainable

development: Commitment to

environmental production made

by Renault.

ECOLOGICAL

ENVIRONMENT


• State sponsored early

retirement program: lowering

the average age of Renault’s

employees.

• Reduced workforce: Renault

shed half its manual assembly

workforce, and increased their

skill levels.

SOCIAL ENVIRONMENT

• Better analysis of the consumer

society: marketing begins to play an

important role.

• New markets develop:

-women and young people

-second car for families

• New habits: Society becomes more

interested in leisure and as a

response Renault launches Espace.

CONSUMERS

Pre-War World II (1889-1945)New era (1996-2013) and beyondMilestones

1999 – Signature of the Alliance

Renault - Nissan1998 – Renault celebrates its centenary

2000 – Purchase of Dacia

2008 – First initiatives towards

an electric vehicle

1999 2000 2005 20071996

• 1st electric concept car

• ECO2 Signature to identify

ecological & economical range

of vehicles

•privatization

•launch of Mégane

•innovation continues

• 4.8 million car

• turnover 500 million

euros

• alliance with Nissan

• purchase of Dacia

• purchase of Samsung Motors

• C. Ghosn becomes

Chairman & CEO of

Renault

2009

• Partnership formed with

the Key Driving

Competences and

Transics

2011 2012 20132010

• Launch of Zoé –

Zero-emission

compact car

The emission of CO2’s

average for the range of

cars sold by Renault in

Europe are among the

lowest in Europe

Electric vehicles

launch:

•10/2011: Kangoo Z.E

•11/2011: Fluence Z.E

New Era (1996-2013) and beyond

• Alliance with Nissan: creates a

larger group in purchasing

negotiation and becomes the 4th

largest automobile group in the

world.

• Purchase of Dacia: low cost cars

were developed to accelerate

economic growth.

• Purchase of Samsung Motors:

building up an energy efficiency

battery plant.

ECONOMIC

ENVIRONMENT

• Privatization: in 1996 Renault

becomes a private company, French

State sells shares and then holds 46%

of Renault.

• Progressive disinvestment of

French State as shareholder:

because it needs money and wants

Renault to be more independent, now it

only owns 15% of Renault shares.

• French State as strong “lobby”:

since the crisis of 2007, it puts

pressure on Renault to keep its plants

in France and not to fire its staff there

because of already high unemployment

in France and the absolute need of

industrialization.



• ECO2 label: guarantees that a car

is made of 95% reusable

materials, and its CO2 emission

will not exceed 140g/km.

• Mass production of electric

cars: Renault starts a new trend in

the car industry and launches Z.E

serial electricity cars; ZOE is the

most desired electric car with 0

CO2 emission.

TECHNOLOGICAL

ENVIRONMENT

• Environmental management

system: Successful reduction of

energy, waste, noise and toxic

discharge consumption.

• Eco-driving awareness: Developing

a system to analyze, interpret and

assess eco-driving skills of

individuals.

• Eco-think & Eco-design: Building

positive and prosperous automobile

future by vision of circular economy.

• Sustainable development:

launching electric vehicles.

• Future prospects: Continuing to

decrease CO2 emission to 100g/km

by 2016.

ECOLOGICAL

ENVIRONMENT


• Low-cost cars: the economic crisis raised the need for low-cost cars

and made the Renault Logan model a best seller;

• Society looking for speed: Renault delivered speedy cars;

• Safety is important: Renault develops new security systems and puts

human protection at the heart of its activities;

• People getting more aware of sustainability and concerned about

the society at large: Renault started working on electric car and

produced Renault ZOE;

CONSUMERS


• Renault as a popular brand: it has always been

in the core of French society’s expectations and

close to its customers’ lifestyle.

• Anticipating the needs of a changing society and

accompanying its evolution.

• Renault has aking into consideration the ever

changing

economic, political, ecological, social, and

technological environment.

Conclusion

THANK

YOU!

• President François Mitterrand commits towards Renault and

chooses a Renault 25 as “company car”. He promotes new models

in public like the Renault Supercinq in oct. 1984.

• After three decades of total absence of Renault cars in the

government, during his mandate F. Mitterrand reintroduces them in

Ministers cabinets.

• Louis Schweitzer (Renault CEO and Chairman, 1992-

2005), Minister of Budget’s chief of staff under F. Mitterrand

government is recommended to enter Renault as Finance Controller

in 1986. Becomes CEO & Chairman in 1992.

Appendix 1

Oct. 1984: F. Mitterrand driving the new Renault Supercinq in

front of Palais de l’Elysée to make the promotion for a car

manufacturer in economic troubles at that time

L. Schweitzer, emblematic CEO and Chairman of

Renault, used to be a very high civil servant in the

French Ministry of Budget before entering Renault.

Renault during the presidency of F. Mitterand

• Partnership formed with the Key Driving Competences company to

step up training for company fleets and private individuals in order to

raising eco-driving awareness

• Partnership with Transics International to develop a system to

analyze, interpret and assess the eco-driving skills of truck drivers in

real time.

• Partner of the Ellen MacArthur Foundation since Sep 2010. (The

Foundation works with industry & education to encourage a

generation re-think, re-design and build a positive and prosperous

future through the vision of a circular economy. The partnership

underscores Renault’s ambition to develop sustainable mobility

accessible for all.)

Appendix 2

Renault’s environmental commitment

Appendix 3

Renault’s logo over time

Consumer Culture - Renault and Society

Marketing

tank world war

wwiipre world war

launched4pre world war

prewar world

enabled renault

louis renault

founder of renault

renault voiturette