New Renault Middle-East India region, CMF-A platform cars
Wef September 1, 2014, Renault Group is changing its international structure. Phase 2 of its medium-term strategic “Renault Drive the Change” plan, Asia-Pacific region is being split in 2 regions.
New Middle-East India region includes Middle East, Gulf countries and Indian sub-continent. Asia-Pacific region includes China, ASEAN countries, Korea, Japan, Australia and Oceania.
Bernard Cambier, member of Renault’s Management Committee steps in as Chairman of Middle-East India Region He will be responsible for sales growth in India, resumption of commercial and industrial activity in Iran while complying with international accords, and overseeing business in Middle East and Persian Gulf countries.
Gilles Normand, member of Renault’s Management Committee and Chairman of Asia-Pacific Region will look into rolling out production-related projects in China and future strategic development in the region.
Carlos Ghosn created Regional Management Committees in 2006. Ever since, Asia-Pacific region has created a dedicated organization, worked on a product range adapted for varied markets, and opened new territories in Iran (local partners), India (Alliance) and Korea (Renault Samsung Motors).
In its present form, Asia-Pacific region includes 48 countries (Middle East, Gulf Countries [GCC], India, China, Korea, Japan, the Association of Southeast Asian Nations* [ASEAN], Australia and Oceania). The region accounts for 50% of the world’s population, 40% of global GDP and 45% of the auto market. Renault Group’s average global market share is 3.3%, in Asia Pacific region that number stands at 0.6%. Renault has production plants in Iran, India and Korea.
Moves that have propelled Renault forward in the region include moving on India from its Mahindra experience, turnaround of RSM in Korea, launch in Indonesia and Malaysia (ASEAN), and plant construction in China as part of a JV with Dong Feng. Despite difficulties in Iran, and Korea), the future looks better.
Market forecasts point to China and India being the world’s 2 leading economies within 20 years. Indonesia, Thailand and Pakistan show growth potential. In keeping with the region’s strategic plan, the market projects 50% of Renault Group’s potential for growth.
Keeping in mind high stakes, volume of strategic projects and current size of Asia-Pacific region, the entity is being separated to strengthen operational management. Dedicated teams can better focus on a primed number of short- and medium-term goals. Mongolia will join Eurasia region, a market similar to its own.
Middle-East India region focusing on Indian sub-continent, Middle East and Gulf countries has a new roadmap for growth. Bernard Cambier will focus on sales increase in India in the short-term. Renault India benefits from a progressive production base here thanks to the Alliance. Renault will launch several cars here based on the CMF-A platform in sync with the plan’s completion.
He will also focus on resumption of commercial and production activities in Iran if the geopolitical context allows, which would be in strict compliance with international agreements. Renault’s facilities in Dubai will be a formidable centre to improve sales in the Middle East and Gulf countries (GCC). proposals pertaining to operational organization of this new region will soon be made to an executive management team.
Along with Southeast Asian (ASEAN) countries, Japan, Korea, Australia and Oceania, Chinese auto market prospects are key to new Asia-Pacific region’s reorganization process. Gilles Normand and his teams will concentrate on project implementation in China by the end of the med-term plan, preparing the region for quick and sizeable volume growth. RSM turnaround will be monitored for sustainable profitability. The team will rollout ASEAN projects and develop business in Indonesia, alongwith fostering growth in Pacific countries.
The creation of these 2 regions regions is intended to ensure Renault’s Executive Management has the organisational capacity to reach sustainable performance target as planned.