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.
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