Renault Startegy Through changing Times

8/10/2019 Renault Startegy Through changing Times

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Renault

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By

Saurabh Singh

13810069


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Some Brief History Founded in the year 1899 by the three Renault brothers - Louis,

Marcel and Fernand, Renault S.A. is a multinational carmanufacturing company based in France.

Louis Renault was founder of Renault. Renault is the 4th largest automaker in the world thanks to its

partnership with Nissan.

Louis discovered Renault when he invented and later patented adirect drive system on his tricycle and turning it into a four-wheelvehicle.

On Christmas eve of 1898 Louis made his first demonstrationtour and, when Louis Renault took up a challenge to drive his A-type Voiturette up the steep Rue Lepic in Montmartre, Paris. Theexploit won him his first 12 orders.


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1898-1913Louis realized to promote carsthrough par t ic ipat ing in racingand this French auto-giant has alsobeen an active participant of the

motor racing sport right from its veryearly days .Company continued to grow asRenault began winning road races:Paris-Berlin, Paris-Vienna.Those victories were the mosteffect ive form of advert is ing and

direct market ing that the brotherscould have wished for. An admiringpublic made their order books fatterwith every race.

Voiturette Type A


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World War I(1915-1919) By world War I Renault had became

important manufacturer of Car in Europe.

The French War Ministry called on Renaultto contribute to the war effort and entrustedit with 31 contracts, including forambulances, aircraft engines and shells.Renault taxis transported some 4,000 mento the front, entering history as the Taxis of

the Marne.

During the first world war, the companyturned out trucks, stretchers, ambulances,shells and even the famous FT17 tanks thatmade a decisive contribution to the finalvictory.


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1919-1945 As the gap between the United States and Europe widened

because of the war and the economic crash, Renault sought toimprove production and to lower costs.

After the economic crisis of 30s, Louis Renault wanted tobecome more autonomous and started buying all sorts ofbusinesses that provided him with the materials and partsneeded to make cars, enabling him to make everything thatwould reduce his dependency on other companies: steel,cardboard, electrical equipment, industrial rubber, oil and

lubricants. He also modernized the factory, emulating Ford and his plant,

introducing assembly plants in 1922.


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This is the time where Renault diversified into manyproducts and fields building anything with a motorattached to it.

Busses, lorries, electric railcars, tractors and evenairplane engines, all were now coming out of theRenault plant.

Renault also adopted a Logo in 1924 which lookslike a diamond.

During this Time Renault also faced tough

Competition from Citroen and made manyexpeditions like Citroen to capture American andAustralian markets. These Expeditions were madeinto Sahara desert to Nigeria


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1945-1975 In 1945, Renault was nationalized in 1945, becoming the Rgie

Nationale des Usines Renault (RNUR).

Post War in order to revive the country's automobile industry. Renault

made 4CV with latest technology of water cooled engine at that time inEurope and is being regarded as 'everyman's vehicle during that timegaining the f i rst mo ver advantage and soon became leading source offoreign income for french government.

Other manufacturers, such as Fiat, Morris and Volkswagen, also tookthis direction, launching their own small cars but could not gain much

advantage. 4CV was followed by the Renault 4 and Renault 5.The company then

launched an upmarket model, the Renault 16, the car for living.At thesame time, the firm continued to achieve impressive results in rallyracing.


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Mergers and Acquisitions In 1956 ,Renault create another plant in Snowflace Factory and

foreign dignitaries were invited to visit the Production facility in anattempt to increase overseas business for investment purpose

and to increase exports. Renault Launched Dauphine to specifically target women

audience and Renault justified this by gifting this Car To QueenElizabeth of United Kingdom.

During this time also Renault ventured into heavy go ods sectorby merging with Latil and Somua, with Renault trucks, creating a

new entity, the Saviem.

Also during the 70s, Renault began expanding its influence andopened up plants in Eastern Europe, Africa and even Australia.The partnership with the American AMC company came in 1979.


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1975-1992 By 1975, Renault had become an industrial group made up of the

original carmaker company RNUR along with various subsidiariesgiving a diversified business outlook.

Renault set up Renault Sport in 1976 and made entry toFormula1 in 1977 .

Renault joined every race until 1986, and got a second place inthe constructors championship of 1983. During this periodRenault supplied Lotus and Tyrell with V6 turbo enginesWhichbecame instant hit and was used by other Williams and Benetton

from 1992 and Renault engines would claim the championship forthe next six years.

During this time Renault stunned the world gain by launchingRenault Espace, the worlds first minivan.


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1992-2005 Renault was faced with labor unrest after it lay off 21000

employees worldwide to manage costs.

Renault tried to have a merger with Sweden based Volvo but the

merger failed to happen as a result of cultural differences andwithdraw of shareholders from swedish based company in 1994.and lack of persuation by french government.

Renault was privatized in 1996 after the failed merger leading toreduction of french govt. stake to 15%.

Renault celebrated its 100 years of existence in 1998 with newlogo and slogan.



Renault Nissan Alliance Renault and Nissan signed an agreement forming the

cooperation blending cross-holdingswith Renault taking a36.8% share in Nissanand joint industrial work. The Renault-

Nissan Alliance was born in 1999. The French-Japanese automaker alliance is working together

from 15 years with synergism and achieved economies of scaleand function across boundaries effectively.

The Alliance has been part of Renault Global ExpansionStrategy.

The Alliance was keen on developments on Emerging markets of China,India,Brazil and

Electric Vehicle.



More Mergers and Acquisitions Renault continued its International Expansion as a part of its

Global Expansion strategy.

Renault takes o ver Dacia:

Renaultbecame the majority shareholder in the Romanian brandDacia in 1999.

Creation of Renaul t Samsung Mo tors :

After Dacia, Renault acquired a 70.1% stake in Samsung Motors,thereby creating Renault Samsung Motors, which continues to

produce and sell vehicles in South Korea today. Renault also acquired 20% stake in Volvo.

Renault acquires a 25% share in AVTOVAZ, Russians leadingcarmaker.



Mahindra-Renault JV With the Aim to expand into emerging markets Renault launched Logan

with Mahindra Motors in India as part of the strategy to win emergingmarkets.

Renault entered joint Venture with Mahindra & Mahindra Motors motorsin 2007 and introduced Logan car in sedan car segment.

The Reason for choosing Mahindra & Mahindra! Gave them adequate platform in short period of time.

Mahindra Group a US $ 2.5 billion company is the market leader in multi-utility vehiclesand tractors in India.

Mahindra and Mahindra helped Tata Motors for over ten years helping them build themodern day passenger vehicle.

M&M had not much presence in Sedan segment i.e. C-segment so Renault had no fearsof having conflicts of interest

Mahindra as a brand was a trusted brand in India.

M&M had built its high network of distributors and suppliers in India efficiently.



2005 onwards Since 2005 Renault is enjoying success in emerging markets.

After MahindraRenault joint Venture came to end in 2010 Renaultestablished its Plant in Tamil Nadu in 2010.

In 2013,Renault signed a joint venture agreement with the Chinesecarmaker Dong feng, creating the Dongfeng Renault AutomotiveCompany (DRAC). The agreement paved the way for the construction ofa plant at Wuhan

They have been focusing on the new Technology adoption anddevelopment of alternative fuel cars. Zero Emission Cars

Electric Cars

Renault pursued its product offensive with the launch of New Mgane and rolled outnumerous initiatives regarding the electric vehicle, partnering with Better Place andelectricity utility EDF and presenting a prototype fuel-cell and concept cars.


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Renault Startegy Through changing Times

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