1. Renault: globalization and some doubts 1992-2007 Freyssenet Michel CNRS Paris GERPISA 15th GERPISA International Colloquium Paris, 20-22 june 2007

2. Since three years, some difficulties Fall of market share Each ten years, a difficult phase 1983-1987 1993-1997 2004- ? But the importance and the causes of the difficulties were completely different Freyssenet M., Presentation, Renault 1992-2007, Globalization and some doubts, Proceedings of Fifteenth GERPISA International Colloquium, "What have we learned about the dynamics of automobile firms and systems over the past 15 years ?", Paris, 20-22 june 2007. Édition numérique : freyssenet.com, 2007, 1,5 Mo, ISSN 7116-0941.

3. The last fifteen years can be divided in three phases 1993-1997 « The quality isn’t enough » but the constraint of the costs reality 1998-2004 The surprising success of innovating car models The take over and the recovery of Nissan, Dacia and Samsung in a favourable context 2005-200? The failure of several car models The compatibility problems of innovative strategy with the QCD requirements Freyssenet M., Presentation, Renault 1992-2007, Globalization and some doubts, Proceedings of Fifteenth GERPISA International Colloquium, "What have we learned about the dynamics of automobile firms and systems over the past 15 years ?", Paris, 20-22 june 2007. Édition numérique : freyssenet.com, 2007, 1,5 Mo, ISSN 7116-0941.

5. 1993-1997 « The quality isn’t enough » The fall of the European market, after the first speculative bubble and the German reunification The failure of the Renault-Volvo merger The impossibility to pursue a « quality » strategy and to contract new alliances The shift to an innovative strategy A cautious internationalization and the privatization of Renault But the necessity to reduce the costs strongly and immediately: closure of Setubal, of Creil and of Vilvoorde plants The pursuit of externalization and the reducing of supplies prices Freyssenet M., Presentation, Renault 1992-2007, Globalization and some doubts, Proceedings of Fifteenth GERPISA International Colloquium, "What have we learned about the dynamics of automobile firms and systems over the past 15 years ?", Paris, 20-22 june 2007. Édition numérique : freyssenet.com, 2007, 1,5 Mo, ISSN 7116-0941.

8. 1998-2004: a series of successes owing to favourable conditions cleverly used (1) innovating models The shattering of the second speculative bubble: the « Asian crisis » and the fall of the car sales in the emergent countries markets and in Japan The inflating of the « new economy » bubble in North America and in Europe and the strong increase of the automobile demand (1997-2000) The success of the conceptually innovating cars: Espace, Twingo, Scenic, Kangoo… gives to Renault importants financial means used to jump at new opportunities… but the requirements of the new profit strategy are not integrated in the socio-productive configuration of Renault Freyssenet M., Presentation, Renault 1992-2007, Globalization and some doubts, Proceedings of Fifteenth GERPISA International Colloquium, "What have we learned about the dynamics of automobile firms and systems over the past 15 years ?", Paris, 20-22 june 2007. Édition numérique : freyssenet.com, 2007, 1,5 Mo, ISSN 7116-0941.

12. 1998-2004: a series of successes owing to favourable conditions cleverly used (2) The take over of Nissan An unimaginable opportunity The astonishing rapid recovery of Nissan : at least three internal and external favourable conditions The acceleration of the Alliance (2002) -equal advantages and responsibilities -Fields of autonomy precisely defined -but Renault reinforces its capital control and its leadership on the Alliance The realized and forecasted synergies and economies Freyssenet M., Presentation, Renault 1992-2007, Globalization and some doubts, Proceedings of Fifteenth GERPISA International Colloquium, "What have we learned about the dynamics of automobile firms and systems over the past 15 years ?", Paris, 20-22 june 2007. Édition numérique : freyssenet.com, 2007, 1,5 Mo, ISSN 7116-0941.

13. 1998-2004: a series of successes owing to favourable conditions cleverly used (3) The take over of Dacia and Samsung The 5000 euros car project. Its originality The conditions of the purchase of Dacia: social and fiscal conditions Logan: the success before the launch The insufficient forecasts of sales and the lack of capacity: bis repetita The first foreigner carmaker in South Korea A New plant ready-to-use A top level R&D department but an error about the perspectives of South Korean market Freyssenet M., Presentation, Renault 1992-2007, Globalization and some doubts, Proceedings of Fifteenth GERPISA International Colloquium, "What have we learned about the dynamics of automobile firms and systems over the past 15 years ?", Paris, 20-22 june 2007. Édition numérique : freyssenet.com, 2007, 1,5 Mo, ISSN 7116-0941.

14. 1998-2004: a series of successes owing to favourable conditions cleverly used (4) but that hided some structural problems The reversing of the demand after the shattering of the “new economy” bubble The failure or the disappointing sales of new cars models: Avantime, Vel Satis, Laguna II The failure in Latin America and Russia Freyssenet M., Presentation, Renault 1992-2007, Globalization and some doubts, Proceedings of Fifteenth GERPISA International Colloquium, "What have we learned about the dynamics of automobile firms and systems over the past 15 years ?", Paris, 20-22 june 2007. Édition numérique : freyssenet.com, 2007, 1,5 Mo, ISSN 7116-0941.

16. 2005-200?: The compatibility problems of innovative strategy with the QCD requirements The position of Renault: to face the early sales fall of some models, we must design and launch quickly models « that people buy ». Meanwhile we prefer to lose market share and to preserve our margin. It is also a good means to know the real preferences of the consumers. A condition: to be able economically and socially to maintain some plants in under capacity What does mean « what people buy » to design innovating cars models? Innovating car models require the liberty of the dimensions The limits of the Alliance Freyssenet M., Presentation, Renault 1992-2007, Globalization and some doubts, Proceedings of Fifteenth GERPISA International Colloquium, "What have we learned about the dynamics of automobile firms and systems over the past 15 years ?", Paris, 20-22 june 2007. Édition numérique : freyssenet.com, 2007, 1,5 Mo, ISSN 7116-0941.

18. Conclusion Some interesting decisions 1. abandon of the specialisation of the plants, developing the lines flexibility 2. standardisation of components interfaces Can Renault invent a new profit strategy? Freyssenet M., Presentation, Renault 1992-2007, Globalization and some doubts, Proceedings of Fifteenth GERPISA International Colloquium, "What have we learned about the dynamics of automobile firms and systems over the past 15 years ?", Paris, 20-22 june 2007. Édition numérique : freyssenet.com, 2007, 1,5 Mo, ISSN 7116-0941.