Renault's answer to the European market crunch.
  • Register
  • Help
Results 1 to 9 of 9
  1. #1
    1000+ Posts gerry freed's Avatar
    Join Date
    Jun 2003
    Location
    Lauderdale, Tasmania
    Posts
    2,887

    Default Renault's answer to the European market crunch.

    In an interview this week the management said that the Duster, which sells at an ultra competitive price and is very well appreciated in the French market is actually their most profitable car. That's an achievement in my book!
    They are planning to move further down below the Twingo in the small, cheap citadine market and use the Logan platform to form the base of a small vehicle to sell at 5000 euros and still make them money.

    They expect the low cost segment to be around 1/4 of there sales by unit.
    Meanwhile they are preparing to introduce models in the upper luxury segments.
    Their strategy echos the demographics of the erosion of the middle class.

    Advertisement
    Think Global - Ride on Spheres

  2. #2
    1000+ Posts
    Join Date
    Mar 2004
    Location
    Melbourne
    Posts
    5,066

    Default

    Interesting post, Gerry.
    Thought that France was quite socialist? Why is it that the middle class is shrinking?

    "The enemy of knowledge is not ignorance, it's the illusion of knowledge"
    Stephen Hawking

  3. #3
    1000+ Posts Kim Luck's Avatar
    Join Date
    Nov 2010
    Location
    Melbourne, Aus.
    Posts
    17,953

    Default

    Maybe they took out too many 'bourgeoisie' in the Revolution?
    Don't it always seem to go that you don't know what you've got 'til it's gone............

  4. #4
    Too many posts! JohnW's Avatar
    Join Date
    Jul 2001
    Location
    Perth, WA, Australia
    Posts
    10,755

    Default

    Quote Originally Posted by gerry freed View Post
    In an interview this week the management said that the Duster, which sells at an ultra competitive price and is very well appreciated in the French market is actually their most profitable car. That's an achievement in my book!
    They are planning to move further down below the Twingo in the small, cheap citadine market and use the Logan platform to form the base of a small vehicle to sell at 5000 euros and still make them money.

    They expect the low cost segment to be around 1/4 of there sales by unit.
    Meanwhile they are preparing to introduce models in the upper luxury segments.
    Their strategy echos the demographics of the erosion of the middle class.
    Thanks Gerry. Interesting and totally logical. I remember some years back my friend in Paris noting that the Logan was available in France and knocking the sales of the small Renaults like the then-new Modus (which I quite like but can't buy in Oz). Ultimately purchase price does talk to buyers!

    Add electric and the geographical spread and you can see why they are doing a bit better than PSA - or I presume they are?

    Cheers
    JohnW

    Renault 4CV 1951
    Renault R8 1965
    Renault Scenic 2005 (wife's)
    Renault Scenic 2007 (mine)
    Renault Scenic 2006 (daughter's)
    CitroŽn CX Pallas 1980

    National Co-ordinator, Renault 4CV Register of Australia

  5. #5
    1000+ Posts Kim Luck's Avatar
    Join Date
    Nov 2010
    Location
    Melbourne, Aus.
    Posts
    17,953

    Default

    When you consider that Leyland lost $28 on every Mini sold in Australia it makes you wonder how they would have gone had the fantastic little cars been made in some unimportant but cheap country? The smaller the car the lower the profit margin is an old adage, so is the view that it costs the same to assemble a small car as a bigger one. Unless they're going to leave something out I can't see a small cheap car being a big winner for Renault, particularly against the might of Toyota and the "other" Korean manufacturers.........
    Don't it always seem to go that you don't know what you've got 'til it's gone............

  6. #6
    1000+ Posts gerry freed's Avatar
    Join Date
    Jun 2003
    Location
    Lauderdale, Tasmania
    Posts
    2,887

    Default

    Quote Originally Posted by JoBo View Post
    Interesting post, Gerry.
    Thought that France was quite socialist? Why is it that the middle class is shrinking?

    Across the developed countries, not just France. It is cause by the changing nature of work and the value society places on it. Those that use their brains creatively are getting better paid, the lower middle class made up of skilled workers is being priced out by developing economies, the public service expenditure is under pressure. I could go on........
    Think Global - Ride on Spheres

  7. #7
    1000+ Posts gerry freed's Avatar
    Join Date
    Jun 2003
    Location
    Lauderdale, Tasmania
    Posts
    2,887

    Default

    Quote Originally Posted by JohnW View Post
    Thanks Gerry. Interesting and totally logical. I remember some years back my friend in Paris noting that the Logan was available in France and knocking the sales of the small Renaults like the then-new Modus (which I quite like but can't buy in Oz). Ultimately purchase price does talk to buyers!

    Add electric and the geographical spread and you can see why they are doing a bit better than PSA - or I presume they are?

    Cheers
    Renault shares are above 30 euros and psa around 6. That says it all.
    Think Global - Ride on Spheres

  8. #8
    1000+ Posts gerry freed's Avatar
    Join Date
    Jun 2003
    Location
    Lauderdale, Tasmania
    Posts
    2,887

    Default

    Anagers
    Quote Originally Posted by Kim Luck View Post
    When you consider that Leyland lost $28 on every Mini sold in Australia it makes you wonder how they would have gone had the fantastic little cars been made in some unimportant but cheap country? The smaller the car the lower the profit margin is an old adage, so is the view that it costs the same to assemble a small car as a bigger one. Unless they're going to leave something out I can't see a small cheap car being a big winner for Renault, particularly against the might of Toyota and the "other" Korean manufacturers.........
    Renault, the sales figures and the financial analysts dont share your view. The low cost sector is propping them up at the moment. They are making good quality cars with no frills in new factories in low labour cost countries and based on technology already amortised.
    Old adages apply to all, innovative approaches pay off for the smarter managers.
    Last edited by gerry freed; 8th October 2012 at 10:00 AM.
    Think Global - Ride on Spheres

  9. #9
    VIP Sponsor David Cavanagh's Avatar
    Join Date
    Feb 2001
    Location
    Romsey, Victoria, Australia
    Posts
    4,819

    Default

    Quote Originally Posted by gerry freed View Post
    Anagers
    Renault, the sales figures and the financial analysts dont share your view. The low cost sector is propping them up at the moment. They are making good quality cars with no frills in new factories in low labour cost countries and based on technology already amortised.
    Old adages apply to all, innovative approaches pay off for the smarter managers.


    None of this surprises me because Renault have always made very very good small cars, right back to the 4CV, it was the 4CV that got them moving again after the war whereas the Fregate was a flop.

    60 years later the cars we work on are usually around 10 years old with a couple of hundred thousand kms and its Clio that comes out best. Clio and Scenic, definately not Laguna so Renault still make the best small cars on the market.

    To me they should stick with what they do best

    With the global ecomomy going the way it is sometimes you have to look at the past to see the future.
    David Cavanagh

    FRENCH CONNECTION / PEUGEO WRECKING / RENOSPARES / CITROWRECK

    03 9338 8191 or 03 93354008

    34 KING St
    AIRPORT WEST
    VIC 3042


    [email protected]

    https://www.facebook.com/FrenchConect

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •