Renault Invests For Growth In The Nordic Market
Jun 21, 2007
• Renault will establish its own subsidiary for the distribution of its vehicles and spare parts and the provision of after sales services in the Nordic market (Sweden, Norway, Finland and Denmark) from January 1, 2008.
• Renault will invest 10 million euros in the creation of Renault Nordic in order to launch an historical product offensive on these markets. Renault Nordic will employ a total of 165 persons, of which 100 will be located at the head office in Stockholm.
• In the context of Renault Commitment 2009, Renault will launch 25 new models under the Renault and Dacia brands in these markets. Thirteen of these models will be launched in 2008. This unique product range, adapted specifically to the rigours of extremely cold climates, will be crowned by a new ecologically-friendly product: Megane E85.
The new subsidiary, called Renault Nordic, will be structured around a regional hub based in Stockholm, Sweden, with local branches located in Helsinki, Oslo and Copenhagen. The head office in Stockholm will manage support functions and support operational entities in all four countries, in order to satisfy its customers there. Renault will use the highly professional and strong existing dealer network, which provides extensive geographical coverage in all four markets. Thus, customers will be able to visit the same points of sale as they do today.
Alain Margaritopol, Managing Director, Renault Nordic commented: “The ambitions of Renault Commitment 2009 announced in February 2006 require that we review our distribution policy in a number of key markets, for greater service quality for our customers and greater growth for our brands. We count on being able to give stronger support to the network, allowing dealers to be more aggressive in their marketing. In addition to an expanded and renewed product line, Renault dealers will see the introduction of the new Logan model. ”
Renault’s three key commitments in the areas of quality, profitability and growth to be met by 2009 entail an increase in annual sales volumes worldwide by 800,000 vehicles compared to 2005 levels. The Europe region is important to this target and a number of markets have been identified where the Renault brand’s potential is under exploited.
“The Nordic zone is one of these key markets, ” continued Alain Margaritopol. ” Renault’s goal is to increase our combined Car & LCV market share in the Nordic markets from 4.0% in 2006 to 7% by 2013. This region is clearly one which we are targeting for growth in the coming years. ”
Annexes:
1. Renault SAS
Renault Commitment 2009 is a growth plan whose ambition is to make and sustain Renault as the most profitable European volume car company. The three major commitments are:
- Position the New Laguna, to be launched in 2007, among the top three models in its segment in terms of product and service quality;
- Achieve an operating profit margin of 6% in 2009;
- Sell an additional 800,000 units in 2009 as compared to 2005.
The net profit of Renault SAS in 2006 was 2.9 billion euros.
2. Renault-Volvo partnership: 25 years of cooperation
Since January 1, 1982, the distribution of Renault cars and LCVs, Renault spare parts and the provision of Renault after sales services in the Nordic countries have been carried out by Volvo Cars, through a network of dual-branded, Volvo-Renault Dealers.
This successful partnership has seen Renault sales develop from 6,500 units in 1982 to more than 35,000 in 2005. In total, 500,000 new Renault vehicles have been sold in the four Nordic markets during this period.
The most recent renewal of the importer agreement between the two manufacturers was in 2003, for a period of five years. Renault announced on 18 August 2006 that the importer agreement with Volvo would not be renewed once the current agreement expires on December 31, 2007.
3. Renault and the environment
Eco²
Renault has crossed a new threshold with the launch of Renault eco², clearly proclaiming its commitment to a product offering that is both environmentally-friendly and affordable. Environmentally-friendly as measured throughout every stage of its lifecycle. Environmentallyfriendly because progress spreads massively as Renault eco² vehicles are affordable for many.
Economical in terms of fuel consumption and affordable technology that in some cases may even be tax deductible. The launch of Renault eco² supports Renault Commitment 2009: it plans to rank amongst the three best world carmakers concerning CO2 emissions with 1.000.000 vehicles sold by 2008 emitting less than 140 g CO2/km, a third of which will emit less than 120 g CO2/km. Renault eco² vehicles meet three global environmental standards:
- They are produced in an ISO-14001-certified plant,
- Their CO2 emissions do not exceed 140g/km (or are biofuel-compatible),
- In addition to being 95% reusable at the end of their life, at least 5% of the plastics they contain have been recycled.
Biofuels
- Renault is a biofuel pioneer, marketing its flexible-fuel Clio and Megane models in Brazil as early as 2004/2005.
In February 2006, when it announced the Renault Commitment 2009 growth plan, Renault also presented an ambitious biofuel policy.
- Renault is one of the very few automakers to offer a biofuel double bill – with the Megane 1.6 16v powered by E85 (85% bioethanol) and diesel engines which can run on B30 biodiesel blends. The Megane Hatch and Touring models will be launched in the summer of 2007 in Sweden with the E85 compatible engine.
