Renault & PSA in Asia


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Study about the presence of Renault and PSA, 2 french car manufacturers, in China and India. History, success and failures, analysis of local management and conflicts with french management.

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  • Complete CARE : un ensemble complet de services premium parmilesquellesunegarantie de 2+2 ansou 80 000 km, la main d'œuvregratuite pour les révisionsà 2000, 10 000 et 20 000 km, ainsiqu'une assistance routière par le biaisd'unecentraled'appelspécifique 24 heuressur 24 et 7 jourssur 7.
  • Pulse = concurrent tata
  • Renault & PSA in Asia

    1. 1. MULTICULTURAL MANAGEMENT The car manufacturers in Asia : the example of PSA and Renault in China and IndiaXiao Xiao LI, Loulou TANG, Mickael KHENKITTISAK & David RODRIGUEZ
    4. 4. 雷 诺 Thunder PromiseFrench car manufacturer in AsiaRENAULT IN CHINA
    5. 5. The RENAULT’s SITUATION in CHINA First market of automobile in the world 18.5 Millions vehicles sold in 2011:2,55 M 2,25M 1,25M 1M ... 24 275 Less popular in China
    6. 6. DEVELOPMENT A FAILED JOINT-VENTURE 1993.12 Sanjiang Renault Automobile Company 1994-2001(8 years): only a total of 4112 Trafic sold ---------2000 ----------------2002 -------2003-------------- Sanjiang Renault Automobile Company stranded
    7. 7. DEVELOPMENT A FAILED JOINT-VENTURE Problem of « Intra » Management : → Disagreement between the Chinese and French managers  Chinese manager "non-cooperation"  French manager "non-agreement"
    8. 8. DEVELOPMENT A NEW COOPERATION 2004, new cooperation with Dongfeng Montor Corporation New: production local in China in 2014-2016 expected
    9. 9. THE « REVIVAL PROJECT » 2009, Renault (Beijing) Automobile Co. Ltd was founded  Brand positioning: "Casual Luxury" 科雷傲 (Koleos) Renault’s sales in China
    10. 10. THE « REVIVAL PROJECT » Marketing:  Import the high-grade models (Koleos, Mégane CC, Scenic, Fluence, Latitude, Laguna)  Improve the brand awareness (exposition, F1, etc)  Expand the sales network  Marketing of "Promise":  After-sale service - " Promise go hand in hand"  Espace - "My Renault" Management:  New CEO :CHEN Guozhang (American-chinese)  Communicate directly with the General Headquarters in France :  2009 Committee of China  2011 A team special to the Chinese market  2011.3 Executive Committee of the Chinese Market
    11. 11. French car manufacturer in AsiaRENAULT IN INDIA
    12. 12. RENAULT in INDIA 2005 : Creation of a JV with Mahindra for the fabrication and the commercialization of Logan vehicles Failure of the Logan in India because of a non- adapted model and a bad analysis of the fiscal market environment 2011 : Sells 49% to M&M and commercialize Fluence, Koleos 2012 : launch Pulse and Scala with Nissan Coming soon : Duster
    13. 13. RENAULT’s MANAGEMENT in INDIA Indian enterprise landscape and partnership : – Joint-venture with Mahindra and Nissan – Direct investments in Design Center – Network of car dealerships Adapts its products and services : – Offers a Complete Care Package – 5 products for all the market segments – Adapts the size of its vehicles
    14. 14. RENAULT’s MANAGEMENT in INDIAPulse (City car - Ultra Low Cost) Dacia Duster (Low Cost 4x4) Koleos (Utility) Fluence (Sedan car)
    15. 15. RENAULT’s MANAGEMENT in INDIAThe « Jugaad » or Innovate faster, cheaper and better : the art to improvise with limited resourcesIntern management : – Recruit, train, retain and promote – Very hierarchical and few participative management
    16. 16. French car manufacturer in AsiaPSA IN CHINA
    17. 17. PSA in CHINA HISTORY 1985 to 1997 : Joint venture between Peugeot and Guangzhou (GPAC) Only 100,000 cars sold over its 11 year Reasons of failure: 1.Bus maker partner 2.Old fashioned cars 3.Government decision
    18. 18. PSA in CHINA HISTORY 2000 : creation of DPCA (Donfeng Citroen Peugeot automobile) 2001 : Peugeot returned to the chinese market 2011 : Joint venture between PSA et Changan automobile = develop high tech and ecological car. Introduction of citroen DS and they will create their own brand.
    19. 19. PSA in CHINA CHINA’S CAR CULTURE Symbol of success for the chinese whereas in France it’s not really important. Influence of the family: buy a car need the approval of the whole family (ganxi)  First car market in the world, the trend is luxury cars whereas in France the trend is compact & ecological cars  Only 4,5% of the population own a car
    20. 20. PSA in CHINA INTERCULTURAL MANAGEMENT in CHINA 2008: China tech center (70 french among 700 employees) Design office with 50 designers from France & China  Formation from french ingeniors (sharing the knowledge & technology of PSA)  Business trip to France to the headquarter in order to get much more knowledge
    21. 21. PSA in CHINA INTERCULTURAL MANAGEMENT in CHINA• China tech is based in • Reasons why they must Shanghai because of its adapt: universities & It’is also a car industry hub Climatic conditions The government has a lot of influence Chinese taste in car are not the same as european taste
    22. 22. French car manufacturer in AsiaPSA IN INDIA
    23. 23. The INDIAN CAR MARKET A dynamic but competitive marketOne of the most dynamic car market of the world  Almost 20% of growth  3rd asian car market and soon the 3rd world one  A GDP per hab which has doubled in 10 years, only 10 indians in 1000 have a car.  Strong development of the road network, 2 cars on 3 cost less than 8300€…and relatively competitive : And soon :
    24. 24. The INDIAN CAR MARKET A dynamic but competitive market The INDIAN CAR MARKET in 2011 4% 3% Maruti-Suzuki 8% Hyundaï16% 49% Tata Motors M&M 20% Toyota Honda
    25. 25. PSA IN INDIA A long and difficult storyFirst presence in India during the 90’s : 309model assembling contract with PALFailure of the project : low sales  Peugeotleaves India in 1997.
    26. 26. PSA IN INDIA A long and difficult story2nd missed opportunity in 2009 after a the failure of acapitalistic partnership with Mitsubishii.September 2011 : PSA announced a new productionsite in Sanand, IndiaAn agreement is signed with the Gujarat governmentfor an expected initial investment of 650 millions of $.One audacious and riskystrategy : launch a sedan carwhile other car manufacturerare only concentrated onsmall cheap cars.
    27. 27. PSA IN INDIA A long and difficult storyAnd today?The project has been postponed in order to bere-examined, especially concerning thefinancial cost (650M$)The solution? A potentiel local partnership(Tata? GM?) even if the indian carmanufacturer deny any merger.
    28. 28. INTERCULTURAL MANAGEMENT IN INDIA A management considerably influenced by strong values • Even if the official caste system may be illegal, there is a strong hierarchical structure, based upon job title. • Motto : “each person has a very distinct role within the organization, and maintaining that role helps to keep order” • A somewhat paternalistic attitude and involvement in personal life
    29. 29. INTERCULTURAL MANAGEMENT IN INDIA A management considerably influenced by strong values • Approach to change : a medium tolerance for change and risk • Quite careful about time guidelines in business situations • Honor and reputation play an important role • Indians are non-confrontational
    30. 30. CONCLUSION
    31. 31. CONCLUSION