Renault President Ghosn: Renault will not give up Chinese production


April 27th (Reporter Xu Jinbo) The biennial Shanghai International Auto Show is in full swing. When GM, Volkswagen, Ford and other global auto giants attacked the Chinese market with heavy fists, showing the latest version of the Chinese version, it was once less. Renault’s presence with Renault’s close contact. People can not help but ask, does Renault want to abandon the Chinese auto market that is in rapid growth?

Renault will not give up China

In response, informed sources here said that as a multinational giant in the automotive industry, Renault's answer to the above questions is obviously negative. On July 13th, 2006, Renault’s incumbent President Ghosn said in Paris in consultation with General Motors CEO Wagner that the three-nation alliance, the United States, Japan, Europe and other developed countries, the automotive market has reached a mature and relatively stable state. It will be difficult to make breakthroughs in a few years. Ghosn pointed out that the real growth of the current automotive industry is in emerging markets such as China, Russia, the Middle East, and India.

Ghosn admitted in the interview that the joint strategy of expanding the strategy in emerging markets is also one of the potential synergies of the three-way alliance. Renault will never give up the Chinese market. It just chooses which way and when to enter the Chinese market.

Indefinitely main product aging

Previously, Renault had many close contacts with China's third-largest auto giant Dongfeng, but the marriage between the two parties has been unresolved and negotiations have been aborted. The emergence of Renault’s limited brand awareness in China, the extremely limited sales of imported vehicles, and the unclear market prospects; the Renault domestic base selection game has been upgraded; the two joint ventures and Guangzhou and Wuhan have not compromised each other, resulting in the suspension of negotiations; Renault’s concerns The localization of Renault and the Renault-Nissan Alliance’s interest maximization will clash, leading to uncertainty; Renault’s attention shifts to North America and it is evaluating the possibility of GM joining the Renault-Nissan Alliance, taking into account China’s investment strategy and other conjectures.

Relevant sources said that more and more information shows that Renault’s product cycle is in a low period and the models are aging. Before 2010, it was impossible to put competitive models that could be differentiated from Nissan to China, which was the biggest concern for Renault’s indecision. !

Ghosn once said that "there is no problem that cannot be solved by the product", and always believed that the product is the object and core of market competition. On February 9 last year, Ghosn announced a development plan called the 2009 Renault agreement. Renault has made three important commitments: The next generation of Laguna launched in 2007 will be ranked among the top 3 in its class for product quality and service quality; before 2009, Renault will have 26 products.

The intensification of product plans will enable Renault to bring a large number of new cars to market at an unprecedentedly high speed: Following the two new models in 2006, 8 new cars will be listed each year between 2007 and 2009, which will be listed between 1998 and 2005. The number of new cars has doubled, and half of these new cars are an extension of the original series.

In addition, products such as low-emission eco-friendly models, gasoline-ethanol engines, diesel-dual-ester fuel engines, hybrids, fuel cells, and electric vehicles are also under development. The average age of its products will be reduced from 3.8 years in 2005 to 2.2 years in 2009. Since last year, Renault has implemented a selective business policy, which has reduced the delivery of low-margin products, resulting in a 7.6% fall in European market sales.

It is imminent to enter the Chinese market

According to Renault’s current product status and development plan, Renault’s new product development cycle takes 3 years. Given that Renault’s 150,000 industrial plant construction cycle takes 18 months, it is almost presumable that Renault’s production in China will be in 2009. Later models.

In accordance with the foreign automobile manufacturers entering China, from the decision-making to planning - design - construction - production requires two years of general law calculations. If January 2010 is used as the first year of Renault’s launch of the first model in China, and the time for reversing the schedule, Renault must start construction of the plant in the second half of 2008 at the latest. In early 2008, detailed design, construction and start-up work will be required. .

Based on this analysis, if early 2010, mid-year, and end of the year are used as three possible production dates for the Renault China Car Factory, Renault is expected to make strategic decisions in the end of 2007 (or early 2008), the middle of 2008, and the end of 2008. , and initiate or resume joint venture negotiations with Chinese automakers to conduct a comprehensive assessment of future joint venture product plans, market risks, investment costs, manufacturing costs, plant location, and factory construction.

Site selection Wuhan has its own advantages

Although the current negotiation between Dongfeng and Renault has been temporarily suspended, Dongfeng has also invested more than RMB 10 billion in Wuhan to launch its own brand strategy. However, the cooperation negotiations between the two parties have not been completely terminated and cooperation is still possible.

At present, Dongfeng and Renault cooperation enterprises are mainly located in Huadu District of Guangzhou City and Wuhan Economic and Technological Development Zone. After comparison, people in the industry believe that both sites have their own advantages.

If settled in Guangzhou, Renault can realize the resource sharing with its Nissan alliance, and at the same time enjoy convenient sea transportation in terms of the company's exports. However, there are many unfavorable factors, such as the local karst topography is not conducive to plant construction, high relocation costs, relatively small development space.

If it is located in Wuhan, Renault can take advantage of the relatively low local construction investment cost, water and electricity operation costs, and strong domestic logistics comprehensive cost. It is also possible to build synergy effects with Dongfeng Motor Co., Ltd. (Dongfeng-Nissan Joint Venture) headquarters and commercial vehicle R&D center headquartered here, as well as affiliates in Wuhan, Xiaogan, Xiangfan, Shiyan and Zhengzhou, Hubei Province, to strengthen Renault-Nissan. At the same time as the alliance, the Dongfeng-Renault-Nissan strategic relationship with the Golden Triangle was successfully established.

In addition, due to differences in history, culture, and corporate philosophy, if Renault manufactures cars in China, key spare parts will still use French products, European and American system products rather than relatively closed Japanese products. In the Wuhan Economic and Technological Development Zone, with the expansion of the production capacity of the Sino-French joint venture Shenlong Company, and the launch of Dongfeng's own-brand sedan project, Valeo, Foglia, Hutchinson, Aike Wire and a number of cars from France and Europe and the United States Component companies have come to invest in factories.

According to the traffic and circulation development plan announced by the new government of Wuhan earlier this year, the city will also plan to open a direct route from Wuhan to Paris in recent years in addition to the Jianghai direct freighter from Wuhan Zhishang Yangshan Port that has already been opened. By then, it will be more convenient and smoother between Wuhan and Paris.
View related topics: Dongfeng Renault project tracking report


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