September 2010 44 Pages Draft.pdf - Renault Owners Club Forum

H E R I TA G ERENAULT 25 YEARS AGOThis year is a bad one for Renaultand truly only its nationalisedstatus saves the group from goingbankrupt. Although pre-taxrevenue is up (from 1984’s FRF106,911m)at FRF111,382m, its net annual loss reachesFRF10,925m (against last year’sFRF12,555m loss), and investment falls toFRF7,774m. The head of Renault, BernardHanon has to pay the price and, undergovernment pressure for the company tochange its policy direction, he resigns on 21January, to be replaced by Georges Besse,who implements a radical re-organisation.Aimé Jardon becomes Renault’s NumberTwo. In these turbulent times, the departureof head stylist Robert Opron passes almostunnoticed and Gaston Juchet, whose officestill remains under the jurisdiction of theDirection des Études, replaces him.The product range starts with the Renault4 (now over twenty years old, but still asolid seller) and passes through theRenault 5 and its Rodéo derivative, thenewly introduced Renault Superfive (salesof which now top the half a millionmark), the Renault 9 ‘three boxer’ and itshatchback sister, the Renault 11, theRenault 18 saloon and its stablemateEstate, the 18-based Renault Fuego coupé,the Renault 25 (which becomes theofficial car for the civil service and for theministries), the Matra-inspired RenaultEspace (which receives an award forinnovation), the Alpine GTA V6 (Atmoand Turbo), the Jeep CJ-7 and Cherokee(made by Renault’s North Americansubsidiary, American Motors [AMC] anddistributed by Renault in some Europeancountries), the Renault Trafic and RenaultMaster until reaching the RVI-Mack rangeof heavy goods vehicles.The group manufactures 1,962,207vehicles worldwide, of which 1,689,575are cars (including AMC), 200,139 areLCVs and 72,493 are RVI and MackHGVs. Excluding RVI vehicles, 702,406are assembled outside France, to whichtotal Spain contributes 224,915 units,Belgium 145,852 units and USA 111,039units.Renault exports 1,018,805 vehicles(excluding RVI). Although the sales of theAMC Alliance (aka Renault 9) and Encore(aka Renault 11) reach 111,039 on the USmarket, the launch of Espace into NorthAmerica proves impossible, because ofthe high cost price of the vehicle(compared to steel-bodied, van-derived,home-grown competitors) and of the nonavailabilityof a V6-engined version.It is estimated that Renault has around30% excess production capacity, so thereare plans to end the policy of growth at allcosts. This is to be coupled to a drasticcost reduction regime under the slogan “afranc is a franc”. The workforce stands atjust over 196,000 and, theoretically, eachemployee produces 10. 4 cars (using aRenault 5 as a base line) every year, withthe average quality rating (AQR) stilllanguishing at 127(target = 140). There willhave to be a slimmingdown of the workforceby some 21,000 over twoyears, to be achievedthrough early retirement,through lay-offs andthrough repatriation aidfor foreign personnel.Tension grows betweenmanagement and unionsand strikes break out atthe main plants, LeMans, Billancourt andChoisy-le-Roi, from 09through 21 October, butthe CGT union’s call toaction is largely ignoredand this setback marks apivotal point in thecompany’s industrialrelations.The heavy vehiclesdivision, RVI (RenaultVéhicules Industriels)needs a financialtransfusion of half a million francs inJanuary and the first steps are taken torecapitalise Renault, to which the statecontributes FRF8 billion. Despite this,RVI announces 2,550 redundancies.Renault sells its Mexico City office andits prestige building in Paris’ Champs-38 R E N o T E s m A G A Z I N ER E N O T E S M A G A Z I N E