Wednesday, December 31, 2008

Renault- French Vehicle Manufacturer

                                 THE HISTORY OF RENAULT


very large 1923 model

1956 Renault 4CV

1972 Renault 5

2003 Renault Mégane

RENAULT

Renault S.A. is a French vehicle Manufacturer producing small to upper-midsize cars, vans, buses, tractors and trucks.

When its cars were imported to and sold in the United States during the 1950s and 1960s, it was decided to pronounce the name as "Ren-ALT" in marketing to the American public, and the Anglicized pronunciation continues in common usage. However, Renault is correctly pronounced "Rhen-oh" (as it is commonly in the United Kingdom).

HISTORY

The Renault corporation was founded in 1898 as Société Renault Frères by Louis Renault and his brothers Marcel and Fernand. Louis was a bright, aspiring young engineer who had already designed and built several models before teaming up with his brothers, who had honed their business skills working for their father's textiles firm; Louis handled design and production, Marcel & Fernand handled company management. The brothers immediately recognized the publicity that could be gotten for their vehicles by participation in motor racing and Renault made itself known through achieving instant success in the first city-to-city races held in France, resulting in rapid expansion for the company. Both Louis and Marcel Renault raced company vehicles, but Marcel was killed in an accident during the 1903 Paris-Madrid race. Although Louis Renault never raced again, his company remained very involved, including their Renault AK 90CV winning the first ever Grand Prix motor racing event in 1906. Louis was to take full control of the company as the only remaining brother in 1906 when Fernand retired for health reasons.

The Renault reputation for innovation was fostered from very early on – in 1899 Renault launched the first production sedan car as well as patenting the first turbocharger. At the time, cars were very much luxury items, and the price of the smallest Renaults available being 3000 francs reflected this; an amount it would take ten years for the average worker at the time to earn. As well as cars, Renault manufactured taxis, buses and commercial cargo vehicles in the pre-war years, and during World War I (1914 - 1918) branched out into ammunition, military airplanes and vehicles such as the revolutionary Renault FT-17 tank. Renault became the world's leading manufacturer of airplane engines, and the success of the company's military designs were such that Renault himself was honored by the Allies for his company's contributions to their victory. By the end of the war, Renault was the number one private manufacturer in France.

Inter war years

Between the two world wars, Louis Renault enlarged the scope of his company, producing agricultural and industrial machinery. However, Renault struggled to compete with the increasingly popular small, affordable "people's cars", while problems with the stock market and the workforce also adversely affected the company's growth.

The pre First World War cars had a distinctive front shape caused by positioning the radiator behind the engine to give a so called "coalscuttle" bonnet. This continued through the 1920s and it was not until 1930 that all models had the radiator at the front.

Post war

During World War II, Louis Renault's factories worked for Nazi Germany producing trucks with work on cars officially forbidden. He was, for this reason, arrested during the liberation of France in 1944 and died in prison before having prepared his defense. An autopsy later proved that his neck had been broken, suggesting that he was murdered. His industrial assets were seized by the provisional government of France. The Renault factories became a public industry (known as Régie Nationale des Usines Renault) under the leadership of Pierre Lefaucheux. In the years immediately following its nationalization Renault experienced something of a resurgence, led by the rear engine 4CV model, which was launched in 1946 and proved itself a capable rival for cars such as the Morris Minor and Volkswagen Beetle, its success (more than half a million sold) making sure it remained in production until 1961. As with earlier Renault models, the company made extensive use of motor racing to promote the 4CV, the car winning both the Le Mans 24 Hours and Mille Miglia races as well as the Monte Carlo rally. However, despite the success of its flagship model, the company continued to be blighted by labor unrest, and indeed continued to be well into the 1980s.

The 4CV's replacement, the Dauphine, sold extremely well as the company expanded production and sales further abroad, including Africa and North America. The car did not sell well in North America and it was outdated by the start of the 1960s. In an attempt to revive its flagging fortunes, Renault launched two cars which were to become phenonemonally successful – the Renault 4 and Renault 8 in 1961 and 1962 respectively. The 4 in particular was to continue in production until 1992. Both cars continued Renault's motor racing traditions with great success in rallying, a tradition which was further upheld by collaborations with the Alpine company (which most famously produced the Renault-powered Alpine A110). As well as the 4 and 8, the company achieved success with the more upmarket Renault 16 launched in 1966, which continued Renault's reputation for innovation by being the world's first hatchback larger than subcompact size as well as the first hatchback with folding rear seats, which became and remains the universal standard hatchback design.

The company's compact and economical Renault 5 model, launched in 1972, was another success, particularly in the wake of the 1973 energy crisis. The 5 remained in production until 1984 when it was replaced by the Super5. The formula was much the same however, and the Super5 inherited its styling lines from its father. Endangered like all of the motor industry by the energy crisis, during the mid seventies the already expansive company diversified further into other industries and continued to expand globally, including into South East Asia. The energy crisis also provoked Renault's attempt to reconquer the North American market; despite the Dauphine's success in the United States in the late 1950s, and an unsuccessful car-assembly project in Saint-Bruno-de-Montarville, Quebec, (1964-1972), Renault had virtually disappeared from North America by the 1970s. However, in the early part of the decade, when the energy crisis-hit continent required small, economical cars, Renault began to make plans to return through a collaborative partnership with the American manufacturer AMC. Previously, an AMC Rambler American was badged as a Renault Torino in Argentina (sold through IKA-Renault).

This was one of a series of collaborative ventures undertaken by Renault in the late 1960s and 1970s, as the company established subsidiaries in Eastern Europe, most notably Dacia in Romania, and South America (many of which remain active to the present day) and forged technological cooperation agreements with Volvo and Peugeot (for instance, for the development of the PRV V6 engine, which was used in Renault 30, Peugeot 604 and Volvo 264 in the late 1970's.). In North America, Renault continued to increase its control over AMC, eventually owning 55% of the company by 1980; the Renault-AMC partnership also resulted in the marketing of Jeep vehicles in Europe. Some consider the Jeep XJ Cherokee as a joint AMC/Renault project since some early sketches of the XJ series was done as a collaboration of both Renault and AMC engineers (AMC insisted that the XJ Cherokee was designed by AMC personnel; however, a former Renault engineer designed the Quadra-Link front suspension for the XJ series).

Unfortunately the American Renault-AMC partnership was not successful - the cars had reliability ratings that didn't meet contemporary North American standards and by the time the Renault range was ready to become established in the American market, the energy crisis was over, taking with it much of the trend for economical, compact cars. Renault sold some interesting models in the USA in the 1980s, especially the simple looking but fun Renault Alliance GTA (Renault 9)and GTA convertible – a real automatic-top convertible with a simple but clean euro-style design with a gently sloping hood, as well as a 2.0 liter engine - big for a car of its class; and the ahead-of-its-time Renault Fuego coupe; Renault sold other models in the US in the 80s. Renault sold AMC to Chrysler in 1987 and the brand and its cars subsequently disappeared (though the subsidiary Jeep brand remained).

In the late seventies and early eighties Renault increased its involvement in motorsport, with novel inventions such as turbochargers in their Formula One cars. The company's road car designs were revolutionary also – the Renault Espace was one of the first minivans and was to remain the most well-known minivan in Europe for at least the next two decades. The second-generation Renault 5, the European Car Of The Year-winning Renault 9, and the most luxurious Renault yet, the 25 were all released in the early 1980s, building Renault's reputation, but same time the company suffered of poor product quality which reflected badly to the image of the brand and the ill-fated Renault 14 is seen by many as the culmination of these problems in the early 1980's.

Restructuring

Although its cars were somewhat successful both on the road and on the track, Renault was losing a billion francs a month and reported a deficit of 12.5 billion in 1984. The government intervened and Georges Besse was installed as chairman; he set about cutting costs dramatically, selling off many of Renault's non-core assets, withdrawing almost entirely from motorsports, and laying off many employees. Although this succeeded in halving the deficit by 1986, Besse's treatment of the workforce resulted in him being assassinated by the left wing terrorist group Action Directe in November 1986. He was replaced by Raymond Lévy, who continued along the same lines as Besse, slimming down the company considerably with the result that by the end of 1987 the company was more or less financially stable.

A revitalized Renault launched several successful new cars in the early 1990s, including the phenonemonally successful 5 replacement the Clio, the second generation Espace, the innovative Twingo, the Laguna, and the 19. In mid-1990's introduced successor to R19,Renault Mégane, was the first car ever to achieve a 4 star rating, the highest at the time, in Euro NCAP crash test in passenger safety. In 1998 Renault introduced Mégane Scenic, a completely new class of cars, a compact monospace with a footprint of a regular Mégane. The return to success on the road was matched by a return to success on the racetrack – Renault-powered cars won the Formula One World Championship in 1992, 1993, 1996 and 1997 with Williams and in 1995 with Benetton.

Privatisation

It was eventually decided that the company's state-owned status was detrimental to its growth, and Renault was privatized in 1996. This new freedom allowed the company to venture once again into Eastern Europe and South America, including a new factory in Brazil and upgrades for the infrastructure in Argentina and Turkey.

In the twenty-first century, Renault was to foster a reputation for distinctive, outlandish design. The second generation of the Laguna and Mégane featured ambitious, angular designs which turned out to be highly successful. Less successful were the company's more upmarket models. The Avantime, a bizarre coupe/minivan hybrid, sold very poorly and was quickly discontinued while the luxury Vel Satis model did not sell as well as hoped. As well as its distinctive styling, Renault was to become known for its car safety – it is currently the car manufacturer with the largest number of models achieving the maximum 5 star rating in EuroNCAP crash tests. The Laguna was the first car to achieve a 5 star rating and in 2004 the Modus was the first small car to achieve this rating.

Current situation

The government of France owns 15.7 per cent of the company. Louis Schweitzer has been the Chairman of Renault since 1992 and CEO from 1992 to 2005. In 2005, Carlos Ghosn (also CEO of Nissan) has become Renault's CEO, Louis Schweitzer staying Chairman.

Renault has a stake of 44.4 per cent in Japanese automaker Nissan together with which they form the Renault-Nissan Alliance. Nissan in turn took a 15 per cent stake in Renault in 2002. Renault also owns Samsung Motors (Renault Samsung Motors) and Dacia, as well as retaining a minority stake (20%) in Volvo Trucks.

In 2004, Renault was the fifth most popular car maker in Britain behind the Ford Motor Company, Vauxhall Motors, Peugeot and Volkswagen. The most popular French car in Britain is currently the Renault Clio, which has been a strong seller throughout Europe since its launch 14 years ago.

For 2004 Renault reported a 43% rise in net income to €3.5 billion and 5.9% operating margin, of which Nissan contributed €1,767 million. The Group (Renault, Dacia, Renault Samsung Motors) posted a 4.2% increase in worldwide sales to a record 2,489,401 vehicles, representing a global market share of 4.1%. Renault retained its position as the leading brand in Europe with 1.8 million passenger cars and light commercial vehicles sold and market share of 10.8%.

Renault, together with associated brands Dacia and Renault Samsung, aims to sell 4 million vehicles worldwide in 2010.

Corporate governance

Current members of the board of directors of Renault are: Yves Audvard, Michel Barbier, Alain Champigneux, François de Combret, Charles de Croisset, Carlos Ghosn, Jean-Louis Girdolle, Itaru Koeda, Marc Ladreit de Lacharrière, Dominique de La Garanderie, Bernard Larraouturou, Henri Martre, Jean-Claude Paye, François Pinault, Franck Riboud, Louis Schweitzer, Georges Stcherbatcheff, and Robert Studer.

Timeline

  • 1898 - Louis Renault founded Renault
  • 1979 to 1987, Renault held majority ownership in the American Motors Corporation (AMC), which it sold to Chrysler Corporation in March 1987.
  • 1986 - On April 9 the government of France ruled against the privatization of Renault.
  • 1992 - Louis Schweitzer becomes president of Renault group.
  • 1996 - The company was privatized to create Renault S.A.
  • 1999 - Renault purchased a 35 percent equity stake in Nissan the troubled Japanese car maker, injecting $3.5 billion to obtain effective control of the company under Japanese law. Renault vice-president, Carlos Ghosn was parachuted in to turn round the ailing firm.
  • 2001 - Renault sold its industrial vehicle subdivision (Renault Véhicules Industriels) to Volvo, which renamed it Renault Trucks in 2002.
  • 2002 - Benetton Formula One team formally becomes Renault F1
  • 2005 - Carlos Ghosn becomes president.

MOTORSPORT

Main article: Renault F1 Main article: Renault Sport

Motorsport has long been recognised as an effective marketing tool for automobile manufacturers. In the late seventies and early eighties, Renault began to involve itself more heavily in motorsport, setting up a dedicated motorsport division called Renault Sport, and winning the Le Mans 24 Hours (once again in collaboration with Alpine) while achieving success in both rallying (with the Renault 5 Turbo) and Formula One. Initially, Renault's entry into Formula One in 1977 was ridiculed when the team's first design included such curiosities as a turbocharger. However, the team were to win their first race on home soil in Dijon a mere two years later and by the early eighties, every front-running Formula One team used turbochargers.

Renault also took over the Benetton F1 team in 2001, and quickly became very competitive, Fernando Alonso winning Renault's first race in its second incarnation at the 2003 Hungarian Grand Prix. 2004 saw the Renault team finish a close third in the Constructors' Championsip and in 2005 the team won both Constructors' and Drivers' titles (with Fernando Alonso).

Questions have been raised regarding Renault's commitment to its Formula One team, particularly with the appointment of Carlos Ghosn as CEO. However at the 2005 French Grand Prix Ghosn set out his policy regarding the company's involvement in motorsport:

"We are not in Formula One out of habit or tradition. We're here to show our talent and that we can do it properly... Formula One is a cost if you don't get the results. Formula One is an investment if you do have them and know how to exploit them."

In short he will continue Renault's investment in F1 as long as the team is successful and can use the resulting publicity for wider commercial gain. Conversly if the team is unsuccessful in future it can be expected that Ghosn will withdraw resources from the sport.

ACCOLADES

Renault cars have performed well in the European Car of the Year awards: the Renault 16 (1966), Renault 9 (1982), Renault Clio (1991), Renault Mégane Scénic (1997), Renault Mégane (2003) and Renault Clio III (2006) have all won the award. The Renault 12 (1970), Renault 5 (1972), Renault 20 (1976), Renault 25 (1985) and Renault Laguna (2002) have all achieved runners-up in spot in the competition. Renault has regularly topped the French car sales charts, fighting off fierce competition from Citroën and Peugeot.

TYPEFACE

Both the Renault logo and its documentation (technical as well as commercial) had used a specially designed typeface called Renault, developed by British firm Wolff Olins. This type family is said to have been designed not for prestige reasons, but mainly to save costs at a time where the use of typefaces was more costly than it is now.

In 2004, French typeface designer Jean-François Porchez was commissioned to design a replacement. This was shown in October of that year and is called Renault Identité.

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