Paris Motor Show 2008: Renault launches the New Megane Family

Paris Motor Show 2008: Renault launches the New Megane Family

02.10.2008: Paris Motor Show 2008: Renault launches the New Megane Family

The automotive industry is faced with the challenge of a global economic and financial downturn. Against this background, Renault is focusing on the prime objective of Renault Commitment 2009, which is "To position Renault firmly as the most profitable and most competitive European volume car company".

In the last three years Renault has achieved some telling results: . the quality of each new vehicle is superior to that of its predecessor, . the conquest of new international markets is continuing, as illustrated by the continued upswing in non-European markets (+10.7% at the end of August 2008), . its operating margin has risen 20% in just one year, . the Renault Nissan Alliance has asserted its position with regard to mobility of the future with electric and ultra low-cost vehicles.

Renault will continue its growth and will be ready to bounce back once the current economic phase is over because it boasts sound fundamentals:

. an innovation policy based on its strong environmental focus,

. company-wide commitment and motivation,

. an expansion strategy in strong-growth markets.



Quality is the only pledge in Renault Commitment 2009 which is unaffected by the business environment.

In several European countries, recent multi-make surveys have given Renault and its latest models (Clio III, New Twingo, New Laguna, New Kangoo) a top three ranking for quality and service.

. Reliability: between 2002 and 2007, the number of incidents fell by 75%.

. Durability: the three-year/150,000km warranty has been extended to the entire top-of-the-range

line-up, while Renault Koleos sends a clear signal to customers that Renault is able to produce

vehicles that are increasingly and durably reliable.

. Suppliers: The number of faulty parts delivered by suppliers was reduced by 80% in four years (2004-2008).

. Warranty costs: Warranty costs were halved in 18 months (between early 2007 and mid-2008).

. Service: In 2007 the percentage of customers worldwide stating that they were fully satisfied with Renault’s service provision in sales and after-sales grew 2.5 percentage points to 78.9%.



In a very unsettled car market, Renault is holding its own in Europe1 and sustaining its expansion strategy in other markets.

At the end of August, the Renault’s group’s sales were down by just 1.4% as Renault held its own in a European market that had shrunk by 3.9%. It confirmed its second place in the manufacturers’ standings for passenger and utility vehicles thanks to strong showings in countries like the Netherlands, where sales were up by 22%, Austria (up 14.8%), Belgium (up 14.1%) and Germany (up 11.2%). Dacia, which has expanded its range with Sandero, has seen its business swell by 33.6%.


1 French and European regions

In France, Renault passenger car registrations had risen 8.3% by the end of August, well ahead in a sector that had grown by only 2.2%. With an overall 23.6% market share (both passenger cars and utility vehicles), Renault has confirmed its position as France’s leading brand.

In the Euromed region, the Group sustained its high 30% market share in Romania, while recording steep rises in sales in Russia (up 20.7%), Morocco (up 20.7%), and Algeria (up 35.2%). In Asia-Africa, sales climbed by 17.6%. Driven by Logan and Sandero, business grew 12.9% in the Americas, while Renault is continuing to increase its market share in Brazil.

Since the first Logan-platform vehicle came to market in 2004, over 1.2 million have been sold in more than 60 countries. With Logan, Renault has established a new global benchmark in the automotive industry. The group predicted how markets would evolve – both outside Europe, where some customers were buying their first new car, and in Europe, where the new Logan automobile concept has now sparked interest. With five vehicles – Logan, Logan MCV, Logan Van, Logan Pickup and Sandero – Renault is the sole manufacturer to offer a comprehensive line-up boasting unprecedented performance and equipment for their price. This unrivalled expertise is a genuine springboard to the group’s international expansion and profitability.


In one year, Renault’s operating margin has grown by 20% despite an unfavourable set of circumstances.

The operating margin is destined to position Renault firmly amongst the most competitive manufacturers and contribute to the company's future growth while maintaining solid financial foundations.


With 6,160,046 vehicles sold in 2007 and close to 355,000 employees worldwide, the Renault Nissan Alliance registered sales up in 2007 (4.2% higher than in 2006), with a worldwide market share of 9.1%.

Since Renault and Nissan created the Alliance nine years ago, they have joined forces in concrete ventures in numerous fields, such as shared platforms, interchangeable components, drivetrain parts, R&D, manufacturing, logistics, purchasing, distribution, etc. At the same time Renault has stepped up the pace of its transformation into a global group, while Nissan has staged a remarkable financial recovery.

In 2007, collaboration intensified, as Renault Nissan Purchasing Organisation (RNPO) broadened its sweep to include all purchasing of parts and after-sales accessories, thus accounting for 92% of the Alliance’s purchase business (up from 83%).

In September 2008, the Alliance’s 2-litre dCi diesel engine – which powers Renault and Nissan vehicles in Europe – made its début in Japan in the new X-Trail. Another Alliance engine, the V6 dCi, will power New Laguna Coupé from the end of 2008, followed by Nissan Maxima in the USA in 2010.



Renault has established the environment as one of the key factors in its development

In May 2007, Renault introduced the Renault eco² signature to help customers identify at a glance its most environmentally friendly vehicles.

With Dacia eco², Renault has delivered proof that ecology and economy can go hand in hand, with no adverse effect on performance or specifications. Renault’s long-standing efforts to reduce CO2 emissions have made it one of Europe’s three most carbon-efficient manufacturers.

In parallel to its new TCe and dCi powerplants, Renault has forged ahead with its commitment to low CO2 emissions by developing electric vehicles. Since January 2008, the Renault-Nissan Alliance has signed agreements with Israel, Denmark, and Portugal, with the prefectural authorities of Kanagawa in Japan, and with the state of Tennessee in the US. These deals will see Renault producing electric vehicles by 2011.

Renault has for years led the field in life cycle management. In February 2008, it created Renault Environnement to further the deployment of its recycling activities in France and abroad. To this end, Renault signed a joint-venture agreement with Suez Environnement subsidiary SITA. This move – the first partnership of its kind in the world – is intended to step up the end-of-life vehicle recoverability processes.

Last but not least, Renault’s production sites have sustained their efforts and every one of them has now secured ISO 14001 environmental certification.


All sectors of Renault have joined forces to ensure the success of the Renault Commitment 2009 plan at every stage of vehicles’ life cycles.


By housing all its engineers at the Technocentre and simplifying development processes, Renault has achieved average savings of some €150 million in the field of vehicle design. The Technocentre, which is celebrating its tenth anniversary this year, is Renault's engineering powerhouse. In accordance with the Group’s international strategy, it is supported by five engineering centres in Spain, Romania, South Korea, Latin America and India to design and adapt vehicles to the demands of all customers.


All Renault’s production plants strive to improve their performance and stay competitive despite falling sales volumes in European markets. Renault continues to invest in all its factories as it develops its range. 2008 saw the production of 33 new vehicles worldwide get underway – from Sandero in Brazil to New Mégane in Spain.


Renault firmly believes in the benefits of long-term relationships with its suppliers and works with them on improving performance in quality, costs, logistics, and innovation.

Supply chain

The Supply Chain World Department was set up in 2008. It works at reducing logistics costs, ensuring that deliveries are reliable and on time, and improving parts and vehicle stock management.

To that end Renault opened its seventh international logistics centre in July 2008 in Pune, India. It will be handling €100 million worth of goods by 2009.

Sales and after sales

Nearly 80% of Renault customers were fully satisfied with Renault’s service provision in sales and after-sales in 2007.



The offer of a broad range of Renault cars thanks to an unprecedented Product Plan: the nine vehicles launched in 2008, seven of which are brand new, have enriched and rejuvenated the Renault range.

. New in the Renault range: Laguna Coupé, Koleos, Twingo Renault Sport, Clio Estate, Grand Modus, Kangoo Compact.

. New in the Dacia range: Sandero, Logan Pick-Up.

. Renewed models: New Mégane Saloon, Renault Symbol

The establishment of a lasting presence in markets with strong growth potential:

- By developing the right vehicles for the market through the 2011 launch of the first electric vehicle line-up and the first ultra-low cost (ULC) vehicle for India.

- By increasing our production capacity in collaboration with our partner Nissan: factories in Chennai, India, and Tangiers, Morocco.

- By sharing our know-how and technology with AvtoVaz, Russia’s leading automaker. This partnership will enable Renault to increase its presence in the Russian automotive market, one of the world's largest with 2.5 million units sold in 2007.


- The high price of oil, which has slowed market growth, changed the sales mix and increased the cost of transportation.

- The rise in raw material prices.

- Exchange rates which have adversely affected our exports outside Europe.

- The financial crisis and the rise in interest rates which have increased financing costs.

- The market downturn, which, in August 2008, saw sales in Spain drop by 43%, in Italy by 25% and the UK by 20%.



- raising vehicle retail prices selectively to offset the rise in raw material costs,

- streamlining the product plan by simplifying, freezing, or postponing non-priority projects,

- reducing structural costs by 10%, particularly through a voluntary departure scheme in Europe (6,000 employees, including 4,900 in France)

- adjusting production plant output, e.g. organising production in a single shift at the Sandouville facility.

- reducing the ratio of R&D costs and investments to sales.



The work completed as part of the Renault Commitment 2009 plan has already borne fruit. Results include advances made in the aim to be one of the top three manufacturers for product and service quality, expansion into markets outside Europe, the success of Logan, reduced costs, an enriched group product range and an intensification of the Alliance with Nissan.

The major strategic projects undertaken as part of the Alliance with Nissan over the last 18 months have laid the foundations for future developments: the Chennai plant in India and the Tangiers factory in Morocco, the electric vehicle project, the development of the ULC car with Bajaj, and the strategic partnership with AvtoVAZ. These are essential factors for Renault’s future.

In the short term Renault is forging ahead with the development of its product range in Europe – in particular through its renewed Mégane range – and continuing its partnership policy in order to assert its presence in growth markets. Looking further ahead, the electric vehicle line-up will be available from 2011, offering customers a new kind of mobility.

The current crisis and the new challenges relating to energy and the environment mark a turning point in the automotive industry. Nevertheless, Renault is mobilising its strengths in order to achieve the major objective of its plan: "To position Renault firmly as the most profitable and most competitive European volume car company.


- Renault France - also photos


02.10.2008 / MaP

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