PLAN
1. Current close-up of automotive industry
2. Renault’s current situation
3. SWOT Analysis
4. « 3B » Analysis Conquest of the Indian Market
1. CURRENT CLOSE-UP OF AUTOMOTIVE INDUSTRY
A marke t shaken by the economic c r i s i s . . .
Restructuring of « mature » markets (Europe and North America)• 500-600 cars/1000 habitants• New target: Less oil consumption and less CO2 emissions• American companies survives thanks to direct aids, Europe thanks
strategic aids
Development of « new » markets China:
100 cars/1000 habitants Massive financial aids from government (30% of crisis aids for
automotive industry) Big stock of Lithium – Electric cars Exponential economic growth (+8% GDP/capita) and steady
growth of automotive infrastructures
Development of « new » markets India
8 cars/1000 habitants and big growth on purchaising power 10 years late compare to China Less focus on export (13-17% of production) Little cars Forecasts: +12-14%/year production increase to 2016
Russia 2007: Expert global agreement say Russia will overtake
Germany 2009: -55% car sales AvtoVAZ, incontested market leader, touched the stoppage of
payment last month (CA – 46%, 50 000 job loss forecasted)
1. CURRENT CLOSE-UP OF AUTOMOTIVE INDUSTRY
2. RENAULT’S CURRENT SITUATION - BRANDS
DACIA1999: Renault buy Dacia, first rumain manufacturer and modernize their factories.
• Key values: Simplicity, Modernity and Robustness bound to inedit report quality/price.
Renault Samsung Motors 2000: Renault take back Samsung Group brand and become first european manufacturer based on south-corean market.
• Renault Samsung Motors become a success example in a country close to foreign investments
2. RENAULT’S CURRENT SITUATION - BRANDS
Renault – Nissan MergerMarch 1999: Renault – Nissan become the first
partnership between European and Japanese companies.• This cooperation don’t stop strengthening in all the domains, of the production and the marketing. • Creation of RNPO (Renault Nissan Purchasing Organization) which cover 100% of purchases.
AvtoVAZ PartnershipFebruary 2008: AvtoVAZ and Renault get into a new strategic alliance.
• AvtoVAZ is the first Russian manufacturer with 23% of share market
2. RENAULT’S CURRENT SITUATION
TYPES DE VEHICULES VENTES 2009 / % VAR YTD
Véhicules particuliers 2 032 565 / +0.7%
Véhicules utilitaires 276 623 / -24.1%
TOTAL 2 309 188 / -3.1%
3. ANALYSE S.W.O.T
STRENGTHS
Successful alliances with:
NISSAN11 year successCompany growth profitability (from 4 to 6%)Opens US and Asian markets
DACIA Attracts “lower end” new customers Huge success of models Logan and Sandero
SAMSUNG MOTORS Opens the North Korean marketElectric propulsion technology transferDevelopment of new platforms (QM5/Koleos)
3. ANALYSE S.W.O.T
STRENGTHS
Carlos Ghosn: a symbolic figure
Leaders on new technologies Low consumption thermal engines
Electric vehicles
3. ANALYSE S.W.O.T
STRENGTHS
Efficient cost reduction strategy -25% between 2007 and 2009
Strategic choices for new production sites Tanger : 200 000 vehicles/year from 2012 onwards Valladolid : Production of the Twizy E Turkey : Production of the Clio4
3. ANALYSE S.W.O.T
WEAKNESSES
AvtoVAZ Alliance: A costly failure
A huge lack of cash Has about 1 billion € of stocks left Still has about 6 billion €s of loan to reimburse to the
government 2009 Formula 1 season hampers its image
« CrashGate » crisis Very poor results Last minute buy by the Genii group
Nearly no presence on the booming Chinese market
3. ANALYSE S.W.O.T
OPPORTUNITIES
End of crisis ... ?
New growing markets (China, Russia, Brasil, India, ...)
Alternative vehicles = New & Open market Who will be the first to conquer it?
3. ANALYSE S.W.O.T THREATS
Many competitors – Chinese manufacturers on the rise
Possible drop of sales in 2010 due to the end of the “cash for clunkers” scheme Has to maintain high bonuses to sell excessif stock
Customers and gouvernments are more and more demanding Euro IV and V regulations (ecology and consumption) Want always more technological
Alliances and changes are going very fast Necessity to be very reactive
4. ANALYSE « 3B »INVEST THE INDIAN MARKET
BUT: Invest the fast growing and high potential Indian market
8 vehicles/1000 inhabitants Very fast growing living standards 12 to 14% expected increase in production until 2016
BESOINS: Make an alliance with a local manufacturer
Assess customer needs Technology transfer Local production sites
A market exclusively aimed at small Ultra Low Cost cars
BASES: Highly competitive market (Nano by TATA) Investments might not payback (Alliance fails, product does not
appeal, ...) Market starting to expand and in constant evolution
necessity to keep a close eye on changes