An important day for Renault
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  1. #1
    1000+ Posts gerry freed's Avatar
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    Default An important day for Renault

    Faced with a soft European market (an understatement), Renault are able to turn to other markets for growth. On Wednesday they signed an agreement after long negotiations, to create a dominant position in the Russian market.
    The Renault-Nissan Alliance finally have taken control of Avtovaz, the largest car maker in Russia and owner of the Lada brand. This gives them 30% of the Russian market which Ghosn aims to increase to 40% by 2016. The market is currently 2.9 million vehicles and Renault hope that this will have risen to 4 million by 2020. Meanwhile the French market has slipped over 20% for them this year.
    Renault-Nissan will hold 67% of a new Russian parent company, chaired by Ghosn, which in turn controls Avtovaz via a 74.5% shareholding. Renault has already put a billion euros in the deal and the Alliance will invest another 1/2 billion. It is being funded by a divestment of the shares of Volvo AB into which Renault's truck interests were folded. Eventually Renault will leave the truck business.

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    The cars that they are going to produce are based on the Dacia low cost technology and will be branded in what is now the usual marketing driven badging. The Lada Largus will be based on the Dacia Logan in wagon and small van versions, a Nissan Almera - a saloon with a boot and two models branded Renault on the same platform.
    This follows Renault's expansion in Brazil and repositioning in France which is based on the Dacia Logan, Sandero and the Duster.
    Clearly, Renault are persisting with their presence in the European market with more expensive but apparently less profitable cars and broadening their appeal with market niche offerings like the Alpine. However, they have positioned themselves well to make their solid profits from low priced, low cost, rugged vehicles. Implicit in this Russian strategy is the lifting of quality of the Lada brand and moving away from its poor market image in the West. Another Skoda in the making?
    This year up to the end of Nov. has seen Renault's sales slip 7.5% in Europe and climb over 25% in Brazil and Russia.
    Think Global - Ride on Spheres

  2. #2
    Contented Peugeot Driver addo's Avatar
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    For the East European market, then, what are typical drivelines mooted for these coming models?

  3. #3
    1000+ Posts gerry freed's Avatar
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    Quote Originally Posted by addo View Post
    For the East European market, then, what are typical drivelines mooted for these coming models?
    The models already exist and production has started. The Logan typically has the 75 or 90 dCi diesel or the petrol engines
    1.2L 16V 75 or the TCe 90. The 90 is a 3 cylinder turbo 12 valve motor - now the European standard for citadines.
    They drive a 5 manual gear box to the front wheels and in the case of the Duster to all 4.
    Europe east and west still follows the rule, real men don't drive automatics.
    For Russia, the entry level Largus, which is the Logan MPV rebadged, is powered by a Renault last generation 1.6L four-cylinder that is rated at 90bhp. The alternative is a 16-valve 1.6L four giving 107 bhp.
    The trick is to use last generation proven Renault running gear which by now is highly reliable and the design and tooling costs are long since amortised. Then as the inner city market grows then they will offer the lower pollution, more economic motors needed for pollution control. For first time car owners and an underdeveloped road system, poseur styling and complex electronics are not worth the costs. That said, the Duster is quite a pretty car as is the new Sandero.
    Think Global - Ride on Spheres

  4. #4
    1000+ Posts FIVEDOOR's Avatar
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    The Russian conditions are somewhat different:-
    http://www.google.com.au/imgres?imgu...9QEwAA&dur=933


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