Eastern Bag manufacturer - It # 39; All Happening !!
Renault is a French automaker marketing test.
Published 23 March 23 2015 Last Edited March 2015.
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Renault is a French automaker, allied with Nissan since 1999 for the last 10 years, the Renault group, which sells 2.5m vehicles a year now, has benefited from the rapid consolidation in the auto industry to grow through various acquisitions and alliances with Nissan Alliance, avtovaz, Badjaj and more recently with Daimler, the acquisition of Dacia and Renault Samsung Motors in particular acquired Dacia obsolete Romanian brand Dacia has been significantly upgraded with new products and significant investments in Pitesti original factory to become the spearhead of Renault's low cost of goods Two models, Sandero and Logan soon PLUMEAU products on the same platform, designed primarily for emerging markets, starting from 5000 euros and sell under the Dacia, Renault and Nissan -the choice is based on the local strength and image of the Differ ales brands in different countries.
In terms of geographic diversification, Renault sees the interest in the Russian market from the beginning and decided to enter this market in 1998. The strategy of Renault, which has grown steadily in the Russian market since 2000, was based on three main steps .
From 1998 to 2005, Renault allied with Moscow, through a joint venture called Avtoframos to import and process in Central Russia and the premium cars produced in Western Europe Cars have inevitably been paralyzed by import tariffs.
In 2005, Renault inaugurated its first plant in the Moscow capacity 60,000 vehicles year Avtoframos's role has evolved to assemble and treat the products as Dacia has been producing Romanian The assembly plant, which represents an initial investment of € 230 million was the result of the complete CKD Flip Renault's strategy in Russia in March 2010, Renault launched the second phase of the Avtoframos plant in Moscow, which has boosted capacity 160,000 vehicles a year for an additional investment of 150 million euros both Logan and Sandero are now assembled in Russia and pursue a progressive integration of parts from local suppliers 20 in 2005, 50 in 2010 Logan was the best-selling vehicle overseas peak Russia to 54,000 vehicles in 2007, allowing Renault to increase its market share with 1 3 percentage points to 5 percent.
In 2007, Renault launched its third phase of expansion by investing heavily in Avtovaz, by far the largest automaker in Russia, which produces Lada brand is owned in part of the state in which Renault acquired 25 shares the complex agreement, we will develop in this article is intended to increase the production capacity of the Renault in Russia, a market that Renault believes that the largest growth in the years to come and the next largest market European market inevitable.
Although the reward of a successful entry in Russia is obvious, the risks of such an approach are conveniently highlighted by the continuing difficulties of AvtoVAZ, deep organizational and close relations with the government that led a strong conflict between the government of M. Poutine and the French automaker in 2009.
The Soviet Union decided to create a national car maker in 1966 thanks to the support of Fiat -The Agnelli family was one of the few Western friends of the Communist Soviet Union, but the overall steel obtained by cheap Exchange- Avtovaz was created in a city built for this purpose called Togliatti near the Volga river, about 800 km east of Moscow and produced an obsolete model of Fiat, the VAZ brand in Russia and abroad 1 Lada.
Lada, who had been one of the main sources of foreign exchange for a while, now insignificant sales abroad, on the contrary, Russia is still well established, despite its lack of competitiveness The local automaker is indeed well protected by government policy which erected high barriers to entry for access to the rapidly growing Russian market.
Thus, from a viewpoint of the alliance, Avtovaz has appeared as a bride attractive because of its dominant position in Russia, the great room for improvement and his desperate need for foreign partners Therefore it formed a joint venture with GM in 2001, and Renault in 2007 1.
3 3 3 The alliance Renault - AVTOVAZ in facts and figures.
Since Renault had already built a joint venture in Russia with Moscow -Avtoframos- could legitimately ask the reason for combining with AVTOVAZ.
3 3 3 1 Make the largest market for Russian Renault.
Renault has developed mainly in the mature markets of Western Europe to 2000 after a notorious failure in the US market, and because of high product entry barriers and tariffs to enter the Japanese market RENAULT had to diversify geographically to emerging countries to maintain sustainable growth therefore it is not surprising that the BRIC countries and Russia in particular has become one of the main axis of development Figure 1 comparing RENAULT many countries in the world with a car for the 1000 GDP per capita and the point of view capita illustrates the potential of the Russian market.
Chart 1 Cars per 1000 capita related to GDP per capita in 2008 Source of data from the World Bank and Motor Vehicles statistics - countries compared Nation Master Retrieved 2009-09-20.
After 2 years of negotiation, Renault acquired 25 shares plus one share of AvtoVAZ, which is a veto, for 1 billion US The partnership was a joint strategic committee for the coordination of joint activities, since each company remains independent 2.
Renault aims to produce Renault and Nissan models through a licensing system, assist in the creation, development and production of a new model based on Lada Dacia cars in the details, Avtovaz used platforms and transmissions vehicle Renault   to renew the technologies used by the brand Lada first two licenses were sold to AvtoVAZ to allow AVTOVAZ Lada build cars based on the Logan 2.
100 million for the licensing rights to the platform, behind the Logan range.
120 million for licensing rights to two Renault engines.
Additional licenses could also be sold, thereby increasing cash flow for Renault in the short term and economies of scale in the medium term.
To achieve its objectives, Renault, which is confident in its ability to reproduce the Dacia success, support AvtoVAZ modernize the 1st line conveyors new platform and create a unified supply chain for all components for AvtoVAZ, Renault and Nissan.
Renault approach can be described by a market and a strategy not on the market.
AvtoVAZ has a theoretical capacity of 1 million vehicles in Togliatti Rather than building a greenfield plant go scratch as MITSUBISHI PEUGEOT decided to make, Renault chose to go faster by a so-called single plant modernization avtovaz The investment was higher than the competition's investment of 1 billion US vs. 620 million, but is supposed to give the high capacity RENAULT production in Togliatti in 2012.
In addition, licenses are a source of cash flow is one of the main constraints for RENAULT today because RENAULT must fund an ambitious but costly program for electric vehicles launched at the California Better Place.
To serve the Russian market important parts RENAULT LOGAN and SANDERO Pitesti, Romania to the assembly line in Moscow to produce 54,000 vehicles sold in 2007 in Russia, Renault has had to support the creation and development of a Romanian carrier This carrier had to build a large fleet of trucks for about 500 trucks are on the road between Pitesti and Moscow each week.
Renault wants to take advantage of leverage synergies with Avtovaz for a higher volume and better prices with suppliers Renault-Nissan Purchasing Organization RNPO also work with Avtovaz to get better quality from its suppliers.
Imports prices justify automakers must produce locally OEMs are even more driven to produce locally the prices are very dynamic and adapted to the conditions in the Russian market.
By combining with a carrier company partially owned and leader on the Russian market, Renault benefits of AVTOVAZ and government network recently, as the price of iron rose, M. Poutine himself met steel producers and led the negotiations to iron a compromise following a series of complaints by industrial producers on rising prices 3 under a new agreement, steel producers will increase prices up to 22 June the end of 2010, well below previously expected increases of up to 30 April.
Renault, which was only 5 of the market, gained a voice through the relationship with AVTOVAZ Renault is pushing to ban the automakers that produce less than 300,000 vehicles this year, the situation is very difficult Avtovaz and high risk bankruptcy could trigger the collapse of Togliatti 750 000 direct and indirect employees car with Renault for support.
AvtoVAZ expects to choose Suppliers Group to be used by Renault avtovaz and by the end of summer 2010 will be given preference to local suppliers that meet the criteria If there are gaps, local suppliers will be encouraged to sign strategic alliances with foreign suppliers in the complete absence of quality suppliers in specific areas, FDI will be encouraged to set up a network of suppliers.
AvtoVAZ is the leader of the Russian car manufacturers In 2008, he represented a quarter of car sales in Russia, which are now down 50 of last year, the company took the loan without government interest in spring, but the money was mostly used to pay suppliers the company needed additional amount and ask Renault US 200mln to 300mln US Renault which was in financial difficulties does not have agreed to invest in new Renault supported almost Avtovaz bankruptcy with the financial support of an upset, but denied the request for a bass drum Renault injection was concerned about how Avtovaz could use these funds Russian Prime Minister Vladimir Putin said that Renault's investment in AvtoVAZ could be diluted unless the French company helps bail Russian carmaker 5 many com Political mentary emphasized Renault's refusal generating an embarrassing and damaging publicity Renault and the Russian government has finally reached an agreement for the transfer of technology more estimated US 300mln to avoid cash payment and dilution Indeed, any dilution would see Renault loses its blocking stake This question is an example of risk against risk of expropriation, the bad publicity that Renault did not anticipate.
The Avtovaz factory is one of the least efficient in the country, making eight cars an employee in 2008, against 28 cars of an employee at the Renault plant in Moscow Renault modernization led, led to a Plan to lay a quarter of the employee Togliatti 102000 in a typical centered monograd -a industry town- this kind of measurement is particularly unpopular and alienated many resentments against Renault again.
At present up to 70 all components are manufactured in the Togliatti plant to Avtovaz - intentions it is a clear legacy of the Soviet system This high level of vertical integration is considered outdated and does not match with the Renault automaker modern business model to change that model, but meets a high resistance as each unemployment modernization means, at least in the short term.
The Organization Renault Nissan Purchasing attempts to change the mode of sourcing Unfortunately, the high level of corruption between suppliers and car manufacturers made this kind of slow transformation and generates conflicts.
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