Renault targets developing markets for sales growth
Published: 10th Feb 2011 10:26:36
French carmaker Renault has said it aims to almost double operating profit margins to 5% in two years by focusing on sales in Brazil, Russia and India.
Strong growth there should help it to sell a total of three million cars a year by 2013.
The company will also join its alliance partner Nissan in an effort to produce 500,000 electric cars per year by 2015.
Renault also reported net profits of 3.4bn euros ($4.6bn; £2.9bn) for 2010, up from a 3.1bn euros loss in 2009.
The new targets were outlined in a six-year strategy announcement.
"We have made a plan that I consider more robust today, with estimates which in some cases are quite conservative, to ensure that Renault has every chance to succeed in its plan," chief executive Carlos Ghosn said.
Last year, the company sold 2.6 million cars.
"The company's situation in 2011 is much stronger in terms of products, technologies and profits," Mr Ghosn said.
Renault's plan to make money by selling small cars in the developing world is in line with the strategies of many of its rivals, whose mantra in recent years has been to build factories in countries where sales are growing.
Indeed, growth in these markets is especially important for Renault as it is not a player in the lucrative US market, and thus it relies heavily on the stagnant European market that is plagued by manufacturing overcapacity.
Marques such as Dacia, Renault's Romanian low-cost brand, and Renault Samsung, its Korean subsidiary, should help bolster growth in the developing world.
In Russia, its stake in AvtoVaz, which makes Lada, should help sales rise.
But whereas most other carmakers are targeting China in a big way, Mr Ghosn said Renault would not enter that market, at least not during the next two years.
"We have no plans for China until 2013," he said.
The company's vision of the market for electric cars is perhaps more ambitious, as has been highlighted recently in a high-profile espionage scandal.
Together with Nissan, Renault said it hopes to sell 1.5 million electric vehicles by 2016, backed by a joint 4bn-euro investment in the technology.
Renault is also hoping to cut costs by deepening its relationship with German industrial group Daimler, which owns Mercedes and other brands.
A year ago, the Renault-Nissan alliance agreed to develop cars jointly with Daimler in order to save 4bn euros between them over a five-year period.
At 04:58:53 in HeadlinesAn explosion at a factory in eastern China has killed at least 65 people, according to Chinese state media.
At 03:59:13 in HealthA campaign for a baby with Down's Syndrome left with his surrogate Thai mother by an Australian couple has raised over $120,000 (£70,000).
At 03:50:50 in EnglandWhen you cannot afford every thing through your salary income if emergency cash requirement middle of month then consider fast quick payday loans same day services for UK people who want to loans up to 1000 pounds in your bank account less than 15 minutes.When unforeseen expenses crop up at the weekend in your life and you don't have no funds left in your pocket to manage unavoidable excess expenses then it will be difficult to handle them on time. Don't worry! For covering up extra payments at the weekend is probable. Right now you can go for weekend payday loans for bad credit.
At 03:03:37 in WorldBritain is to temporarily close its embassy in the Libyan capital, Tripoli, because of worsening violence.
At 02:30:08 in EnglandHundreds of cobbles in a Manchester square are to be photographed to ensure they are returned in the same position once a new tram link has been built.
At 02:12:09 in EnglandThe remains of a grand Hampshire house destroyed during the English Civil War are being unearthed for the first time in more than a century.
At 01:47:29 in HeadlinesJournalists in Mexico have criticised a new law that restricts crime reporting in north-eastern Sinaloa state.
At 01:46:42 in EnglandFriendly, eclectic and organised by a fireman, the first-ever Cambridge Folk Festival could easily have been the last. Half a century later, and the festival taking place this weekend is known around the world as a premier music event.
At 01:43:48 in EnglandSome of the 20th Century's best-known "concrete cities", such as Birmingham, Hull, Portsmouth and Coventry, are embarking on major regeneration work. But as the bulldozers move in, what is being lost?
At 01:43:16 in HeadlinesForeign drivers are costing councils millions of pounds every year due to unpaid parking fines, the Local Government Association says.
Harvard CitationBBC News, 2011. Renault targets developing markets for sales growth [Online] (Updated 10th Feb 2011)
Available at: http://www.ukwirednews.com/news/129562/Renault-targets-developing-markets-for-sales-growth [Accessed 2nd Aug 2014]
News In Other Categories
The Uber taxi app is "competing unfairly" with London's black cabs, senior Labour MP Margaret Hodge says.
With the doors to its brand new £1million training centre officially open, one of the UK's leading apprentice training providers, Bristol based S&B Automotive Academy, is showcasing its world-class facilities by launching a series of foreign student exchanges for the first time in its 41-year history. To get a flavour of what life is like as an apprentice in the UK, the Academy hosted 16 apprentice engineers and bus drivers from the G9 Automotive College in Hamburg, Germany, as part of a Europe-wide vocational training initiative called the ‘Leonardo Programme’ with support from the European Social Fund. In a reciprocal arrangement, S&B will be sending nine apprentices to Germany during February 2012 so that they can get an appreciation of life in the automotive industry on the Continent. A further three German exchange groups are being planned for next year. Designed to assist the development of vocational skills and training across Europe, including work placements for trainees, the Leonardo Programme has a budget of €1.75bn, which is helping to encourage UK organisations to work with their counterparts abroad. In what is expected to be another challenging year for employers in the UK automotive sector, S&B’s Chief Executive, Jon Winter, claims that the exchange initiative will bring many benefits to the Academy and its apprentices: “In a world of global automotive brands, it’s important for our learners to understand the international context of the industry they have chosen to make their career. This new exchange programme will enable apprentices and Academy staff alike to achieve a better understanding of the challenges and opportunities within the automotive arena in Europe. With the Academy’s influence also extending to the USA and Asia, there’s every possibility that this initiative could move further afield in the future.” Continued Winter: “The need for skilled technicians across the world is on the increase and we actively encourage our apprentices to look at broader horizons during their training. Many of them have already learned the phrase ‘Vorsprung durch Gelehrtheit’, quite simply, ‘Advancement through learning.” In the 2010/11 academic year, S&B doubled the number of successful Apprenticeships over the previous year with some 350 apprentices graduating from the Academy. At the same time, achievement levels reached an all-time high with an overall success rate of 85%. For those learners on the Advanced Apprenticeship three-year programme, success rates were even higher, at over 98%. PHOTO CAPTION: As part of their exchange visit, S&B Automotive Academy arranged for the German apprentices to visit Hampshire bus operator, Bluestar, at its Barton Park depot. The students are pictured with S&B’s Andy West (3rd right) and Steve Prewett, Bluestar’s Area Engineering Manager (2nd right). Ends http://www.sandbaa.com
When you cannot afford every thing through your salary income if emergency cash requirement middle of month then consider fast quick payday loans same day services for UK people who want to loans up to 1000 pounds in your bank account less than 15 minutes.When unforeseen expenses crop up at the weekend in your life and you don't have no funds left in your pocket to manage unavoidable excess expenses then it will be difficult to handle them on time. Don't worry! For covering up extra payments at the weekend is probable. Right now you can go for weekend payday loans for bad credit.
The incoming music director of the English National Opera (ENO) has said the company will keep taking risks in spite of funding cuts.
One hundred years ago this summer Britain and her Empire stood on the brink of war. Frantic last-minute diplomacy had come to nothing - and armies were mobilising across Europe.
A gardener says he feared losing his leg after being bitten by a false widow spider hiding in a Vale of Glamorgan shed.