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Agenda
1
Pre – World
War II
1898-1945
2
The Thirty
Glorious
1945-1973
3
Modern
Years
1973-1996
4
New Era
1996-2013And Beyond
Pre-War World II (1889-1945)
1936 - Worker strikes
1914 - Tank support for France
during WW I
1934 - Largest factory in France (32000
workers)
1945 – Collaboration with Germans
During WW II
Pre – World War II (1898-1945)Milestones
1905 1912 1913 19141903
1.
• tank support for
France during WW1
• 1200 cars/year
• 800 workers
• to make a car takes
1 year
• measure of working
time
• 1st order for taxis & buses
• 30% taxis and buses in
Paris are Renault
• 1st labor strike
• 4480 cars/year
• 10% of the French
market
• first assembly
line
1922
1905 191219031934 1936 1945
•worker strike
•Renault will always be a symbol
for working class and union
• largest factory in France
• 32000 workers•collaboration with Germans
in WWII
Pre – World War II (1898-1945)
1898
• Renault
Voiturette is
launched
Pre – World War II (1898-1945)
• High accessibility: new era of cars
instead of « horses » leads to increase
accessibility in different regions and
economic development;
• Increased productivity: mass
production and Taylorism techniques
raise productivity;
• Automotive industry in France: the
fast-growth of Renault helps the
automotive industry to become an
important segment in France;
ECONOMIC ENVIRONMENT
• Invention of first transmission
gear car: this layout of design was
used until the 1970’s in the car
industry;
• Introduction of the assembly line:
enabled Renault in mass production;
TECHNOLOGICAL
ENVIRONMENT
POLITICAL ENVIRONMENT
Pre – World War II (1898-1945)
• World War I: Great support to the French army by providing it with
munitions, airplane engines and the famous FT-17 tank;
• World War II: France is occupied by Germans and cars are forbidden
to be produced, so to survive Renault produces army trucks for the
German army;
• Collaboration accusations: At the Liberation, Louis
Renault, founder of Renault, is accused of having collaborated with
the enemy and jailed;
• Seduction: cars become an object of seduction and are related to a
certain “art de vivre”;
• Conveyance: at the same time, a part of the consumers are looking
for a practical and affordable car, so Renault launches Juvaquatre;
• Agricultural: Renault increased its scope as it realized the need of
agricultural machinery in the society because major population was
engaged in farming.
Pre – World War II (1898-1945)
CONSUMERS
Pre-War World II (1889-1945)
1945 - Nationalization
1945 – Collaboration with Germans
During WW II
The Thirty Glorious (1945-1973)Milestones
1960’s – The production doubles
(from 2500 to 5000 cars/day
1955 – Pierre Dreyfus is named CEO
1973 – Oil Crisis
1947 1952 1968 19731945
First oil shockPierre Lefaucheux
becomes CEOPierre Dreyfus is
named CEO
4CV: family
car for holiday
33 days of workers
strike
The Thirty Glorious (1945-1973)
1961
R4: the affordable
car for everyone
The Thirty Glorious (1945-1973)
• High Accessibility: small cars
popularization stimulates
commerical and economic
development;
• Car Industry: Raising car
productivity raises the GDP in
France;
• Oil Crisis: led to greater interest
in renewable energies;
ECONOMIC ENVIRONMENT
• Nationalization: in 1945 the
Limited company Renault
becomes “Régie Nationale des
Usines Renault”;
• May 1968: Renault faces big and
long-lasting strikes organized by a
minority of communist workers
who ask for unprecedented
welfare benefits. Those lead to
agreements between both parties.
POLITICAL
ENVIRONMENT
The Thirty Glorious (1945-1973)
• Emergence of new social groups, new social roles, standards
and status: Analyzing the emergence of the different classes in the
society and their materialistic nature Renault started focusing on
innovation in cars in order to fulfill demands and to compete with
other companies (VW and its Beetle).
• Labor unrest in France: lead Renault to introspect which resulted
in better working rights and wage hike for workers.
SOCIAL ENVIRONMENT
The Thirty Glorious (1945-1973)
• New businesses: Renault helps national
reconstruction and promotes work by building
utility vehicles, with which French people can
develop their businesses.
• The popular car: the idea is more actual than
ever so Renault launches 4CV, which becomes
accessible to all and is therefore a big success.
• Different needs: In response to the increasing
customer demands, Renault launches R16, a
more stylish and technologically advanced.
• Oil crisis: Renault was quick to realize and fulfill
consumer’s need of fuel-efficient car during 1973
oil crisis.
CONSUMERS
Renault utility vehicle
Renault 4CV
Pre-War World II (1889-1945)
1996 – Privatization of the company
Modern years (1973-1996)Milestones
1970’s – Introduction of JIT production 1977 – Formula 1 sensation
1984 – After the economic crisis
a recovery plan is set
•Heavy Loss
• Privatization
1980 1981 19841972
F. Mitterrand President
1981-1995
1996
R5 economic car for
young people
Business
troubles• Heavy Loss
• Privatization
• Upmarket car: R 25
• Monospace car: Espace
Modern Years (1973-1996)
Modern Years (1973-1996)
• Recovery plan (after the
economic crisis): Renault
puts in place a recovery plan to
stimulate its economic growth
in France.
• After the lack of success of a
Volvo fusion, Renault opens
its capital.
ECONOMIC ENVIRONMENT
• During 14 years: deep intimacy
between the French socialist
government of F. Mitterrand and
the state-owned company
Renault (see Appendix1).
• Preparation of Renault
privatization: with new
Chairman & CEO Raymond
Lévy.
POLITICAL ENVIRONMENT
Modern Years (1973-1996)
• Introducing just-in-time
production: largely decreased
the stock and allowed better
utilization of resources.
• First use of turbo engine in
Formula One: Renault RS10
was the first Turbocharged car
to win Formula One; later, this
technology was applied to other
mass production car models;
TECHNOLOGICAL
ENVIRONMENT
• Negative influence of the
industrial revolution: more CO2
emission (140g/km) & less
recyclable material (5%).
• Early adoption of eco-thinking:
Technological breakthroughs
allow for an early integration of
innovative solutions (energy
saving) on Renault plants.
• First steps of sustainable
development: Commitment to
environmental production made
by Renault.
ECOLOGICAL
ENVIRONMENT
Modern Years (1973-1996)
• State sponsored early
retirement program: lowering
the average age of Renault’s
employees.
• Reduced workforce: Renault
shed half its manual assembly
workforce, and increased their
skill levels.
SOCIAL ENVIRONMENT
• Better analysis of the consumer
society: marketing begins to play an
important role.
• New markets develop:
-women and young people
-second car for families
• New habits: Society becomes more
interested in leisure and as a
response Renault launches Espace.
CONSUMERS
Pre-War World II (1889-1945)New era (1996-2013) and beyondMilestones
1999 – Signature of the Alliance
Renault - Nissan1998 – Renault celebrates its centenary
2000 – Purchase of Dacia
2008 – First initiatives towards
an electric vehicle
1999 2000 2005 20071996
• 1st electric concept car
• ECO2 Signature to identify
ecological & economical range
of vehicles
•privatization
•launch of Mégane
•innovation continues
• 4.8 million car
• turnover 500 million
euros
• alliance with Nissan
• purchase of Dacia
• purchase of Samsung Motors
• C. Ghosn becomes
Chairman & CEO of
Renault
2009
• Partnership formed with
the Key Driving
Competences and
Transics
2011 2012 20132010
• Launch of Zoé –
Zero-emission
compact car
The emission of CO2’s
average for the range of
cars sold by Renault in
Europe are among the
lowest in Europe
Electric vehicles
launch:
•10/2011: Kangoo Z.E
•11/2011: Fluence Z.E
New Era (1996-2013) and beyond
• Alliance with Nissan: creates a
larger group in purchasing
negotiation and becomes the 4th
largest automobile group in the
world.
• Purchase of Dacia: low cost cars
were developed to accelerate
economic growth.
• Purchase of Samsung Motors:
building up an energy efficiency
battery plant.
ECONOMIC
ENVIRONMENT
• Privatization: in 1996 Renault
becomes a private company, French
State sells shares and then holds 46%
of Renault.
• Progressive disinvestment of
French State as shareholder:
because it needs money and wants
Renault to be more independent, now it
only owns 15% of Renault shares.
• French State as strong “lobby”:
since the crisis of 2007, it puts
pressure on Renault to keep its plants
in France and not to fire its staff there
because of already high unemployment
in France and the absolute need of
industrialization.
POLITICAL ENVIRONMENT
New Era (1996-2013) and beyond
• ECO2 label: guarantees that a car
is made of 95% reusable
materials, and its CO2 emission
will not exceed 140g/km.
• Mass production of electric
cars: Renault starts a new trend in
the car industry and launches Z.E
serial electricity cars; ZOE is the
most desired electric car with 0
CO2 emission.
TECHNOLOGICAL
ENVIRONMENT
• Environmental management
system: Successful reduction of
energy, waste, noise and toxic
discharge consumption.
• Eco-driving awareness: Developing
a system to analyze, interpret and
assess eco-driving skills of
individuals.
• Eco-think & Eco-design: Building
positive and prosperous automobile
future by vision of circular economy.
• Sustainable development:
launching electric vehicles.
• Future prospects: Continuing to
decrease CO2 emission to 100g/km
by 2016.
ECOLOGICAL
ENVIRONMENT
New Era (1996-2013) and beyond
• Low-cost cars: the economic crisis raised the need for low-cost cars
and made the Renault Logan model a best seller;
• Society looking for speed: Renault delivered speedy cars;
• Safety is important: Renault develops new security systems and puts
human protection at the heart of its activities;
• People getting more aware of sustainability and concerned about
the society at large: Renault started working on electric car and
produced Renault ZOE;
CONSUMERS
New Era (1996-2013) and beyond
• Renault as a popular brand: it has always been
in the core of French society’s expectations and
close to its customers’ lifestyle.
• Anticipating the needs of a changing society and
accompanying its evolution.
• Renault has aking into consideration the ever
changing
economic, political, ecological, social, and
technological environment.
Conclusion
• President François Mitterrand commits towards Renault and
chooses a Renault 25 as “company car”. He promotes new models
in public like the Renault Supercinq in oct. 1984.
• After three decades of total absence of Renault cars in the
government, during his mandate F. Mitterrand reintroduces them in
Ministers cabinets.
• Louis Schweitzer (Renault CEO and Chairman, 1992-
2005), Minister of Budget’s chief of staff under F. Mitterrand
government is recommended to enter Renault as Finance Controller
in 1986. Becomes CEO & Chairman in 1992.
Appendix 1
Oct. 1984: F. Mitterrand driving the new Renault Supercinq in
front of Palais de l’Elysée to make the promotion for a car
manufacturer in economic troubles at that time
L. Schweitzer, emblematic CEO and Chairman of
Renault, used to be a very high civil servant in the
French Ministry of Budget before entering Renault.
Renault during the presidency of F. Mitterand
• Partnership formed with the Key Driving Competences company to
step up training for company fleets and private individuals in order to
raising eco-driving awareness
• Partnership with Transics International to develop a system to
analyze, interpret and assess the eco-driving skills of truck drivers in
real time.
• Partner of the Ellen MacArthur Foundation since Sep 2010. (The
Foundation works with industry & education to encourage a
generation re-think, re-design and build a positive and prosperous
future through the vision of a circular economy. The partnership
underscores Renault’s ambition to develop sustainable mobility
accessible for all.)
Appendix 2
Renault’s environmental commitment