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User Guide

Renault updates management plan and sets new goals for 2017

Will integrate core functions with Nissan and enhance non-European businesses

2014/04/25

Summary
Renault’s goals and strategies
France: Production enhancement and reduction of workers
Russia: Establishing joint purchasing company with AvtoVAZ
China: Establishing JV plant with Dongfeng / Korea: Renault Samsung's new business plan
Updates in other markets
Renault's 2013 global unit sales reach 2.63 million units; 50.5% sold outside Europe
Renault's 2013 revenues achieve EUR 40.9 billion; net profit declines to EUR 695 million
Production Forecast by LMC Automotive: Renault’s production will reach 3.71 million units in 2017

Summary

Renault Group sales In 2013, Renault sold 2.63 million vehicles worldwide, up 3.1% year-over-year (y/y). As in 2012, it sold more than 50% of its sales outside Europe.　Revenues grew by 0.5% y/y to EUR 40.93 billion and its operating margin by 58.8% y/y to EUR 1.24 billion.

In order to achieve its new goals in 2017, Renault aims to reduce costs by slashing workforce and introducing lean manufacturing system in France.
Renault sold more than 50% of its sales outside Europe. In Russia, it will implement joint purchasing with its partner in Russia, AvtoVAZ, and will improve the quality of the Lada product. In China, joint venture plant will be built to expand its business. In Brazil, an additional investment will be made to enhance production capacity. In Korea, Renault Samsung announced its medium-term plan to become the top three automakers in Korea by 2016. In India, Indonesia, and Morocco, Renault will form an alliance with local partners, boosting sales through enhancement of production capacity and introduction of low-priced models.

Renault will also strengthen its alliance with Nissan. By integrating the two companies’ business functions for research & development, production, purchasing, and human resources, the alliance intends to reduce costs and to improve the management efficiency. It will expand the scale of Common Module Family (CMF) or purchasing of parts to generate the economies of scale.

Related Reports:
・Nissan develops “Datsun” car brand for emerging markets （Apr 2014）
・Nissan: 80% of future vehicles will be based on new Module Strategy（Apr 2014）
・European OEMs: 2013 results and 2014 outlook（Apr 2014）

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