Financial capacity of the largest market in the country in the Moscow region has declined, but others could grow by tens of percent - mainly due to the replacement of low-cost cars by more expensive models, experts say.19 junemore info
Sales of cars with mileage by the largest dealers in Russia in 2016 were 212.6 thousand units.
Date of issue: 07.04.10
Format: A4, 109 pages
Price: 1 750 €
While Renault’s aggressive electrification plans have raised much attention in the industry for their ambition and its still unclear prospect due to the early adoption of electric vehicles without intermediate hybridisation steps, the French carmaker is attempting to weather the aftermath of 2009, a year which was marked by a significant drop in deliveries and swinging to a €3.7bn loss. The prospect of shrinking total industry volumes by 10% in 2010 leave the carmaker little space to manoeuvre in terms of investments and all potential savings have to be pursued at all levels with a shrewd management of R&D and capital expenditures.
To reach this target Renault can leverage its partnership with Nissan, of which the two carmakers still have to reap the full benefits, ten years from its establishment. Investment rationalisation for plants and R&D expenses, capacity sharing, cross-manufacturing agreements and increased component commonality beyond the already well-established platform sharing are among the tools used to trigger synergy savings contributing to the bottom line of Renault and Nissan. Purchasing activities also contribute with the lion’s shares of potential savings, although far from being at arm’s length considering it took ten years to create a truly shared purchasing service organisation managing all the purchases for the two carmakers. Once the share of components and architectural commonalities increase further the Alliance is well positioned to achieve significant technical savings. It s also within this context that Renault-Nissan has agreed with Daimler on a partnership which allows platform sharing in the city car segment and powertrain cross-supply, creating scale economies and further synergy savings.
The global sourcing push, which many believe linked to Ghosn coming to the throne of the Alliance, seems unabated notwithstanding social and public officials’ coverage. This could be further extended with more suppliers being selected in emerging countries, not necessarily where Renault holds a manufacturing presence. However the Logan project has proved a battering ram in creating a supply base in leading competitive countries which can be drawn for global sourcing purposes.
This report, in line with the Supplying the OEMs product series, not only provides a complete overview over all the production and platform strategic implications for current and potential suppliers, but provides the results of unique research conducted by SupplierBusiness over a range of business practices and relational issues between the French carmaker and its supply base. All the above is coupled with an extensive analysis of the purchasing strategy, making “Supplying Renault” a strategic tool for decision-making for suppliers as well as all stakeholders in the OEM’s procurement strategy.
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