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 11:03:18 in HeadlinesIt is the day when Christians commemorate Jesus Christ's crucifixion. So why is it called Good Friday?
At 10:50:26 in EnglandA Good Friday service and procession will replace a Passion play which was cancelled after a council official did not realise it was a religious event.
At 10:46:28 in EnglandRail passengers travelling from Kent, Sussex and Surrey into London face disruption as engineering work takes place over the Easter weekend.
At 10:44:59 in EnglandA lorry driver who was arrested after a fatal pile-up on the M26 in Kent has been released on bail.
At 10:44:50 in SportCrystal Palace boss Tony Pulis is willing to meet the Premier League over claims his club were given Cardiff's team-sheet before they beat their rivals in early April.
At 10:41:20 in ScotlandThe CBI, representing many large businesses, has registered with the Electoral Commission as a backer of the campaign against Scottish independence.
At 10:37:09 in EnglandVandals attacked street art believed to be by Banksy which appeared in Cheltenham this week - but it was saved by drinkers who rushed from a nearby pub to wash off the paint.
At 10:30:38 in HeadlinesThe United States is to release frozen Iranian funds, saying Tehran has kept commitments made under an interim deal over its nuclear programme.
At 10:08:35 in HealthTests taken by foreign doctors who want to work in the NHS should be made harder to pass to bring them in line with UK standards, a study has said.
At 10:02:31 in WalesA motorcyclist has died after being involved in a collision with a parked vehicle in Neath.
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 18th Apr 2014]
News In Other Categories
Tests taken by foreign doctors who want to work in the NHS should be made harder to pass to bring them in line with UK standards, a study has said.
The CBI, representing many large businesses, has registered with the Electoral Commission as a backer of the campaign against Scottish independence.
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
The independent unionist Northern Ireland Assembly member David McClarty has died after an illness.
Barnes & Noble's chairman has trimmed his stake in the bookstore to 20%, by selling shares worth $64m (£38m).
Crystal Palace boss Tony Pulis is willing to meet the Premier League over claims his club were given Cardiff's team-sheet before they beat their rivals in early April.