Renault and Nissan's grand plan for growth is the exact opposite of that

"El Relámpago(LZone) - Humanity First!" (lightningzone)
05/29/2020 at 09:06 • Filed to: None

They will close a bunch of factories. They will slash many models (A110 and GT-R could be among those) and they will fire at least 20.000 to 25.000 direct employees. This is ridiculous.

Also, their old logo was cooler.

Bring Carlos back!

DISCUSSION (9)

pip bip - choose Corrour > El Relámpago(LZone) - Humanity First!
05/29/2020 at 09:14

not a good sign

If only EssExTee could be so grossly incandescent > El Relámpago(LZone) - Humanity First!
05/29/2020 at 09:16

While it's a sound business strategy, I agree yeah they're taking it a bit extreme.

facw > El Relámpago(LZone) - Humanity First!
05/29/2020 at 09:20

Slashing costs to boost short term profitability, something my present employer knows all about (just had a round of layoffs this week). I’m not sure it’s a great long term strategy (especially in the auto industry where boosting capacity is harder than just hiring more people), but maybe it has to be that way if the company won’t survive long term without quick action to stop the bleeding.

duurtlang > El Relámpago(LZone) - Humanity First!
05/29/2020 at 09:26

I haven’t read through all this in detail. Are they looking for growth (volume), or are they looking for growth (profitability) and long term survivability?

The Alpine and the GT-R are niche cars. I like having them, but they don’t really touch the bottom line.

The Nissan lineup in Europe has been incredibly lackluster for ages, resulting in poor sales (except the Qashqai). Big Renaults are competing in a market segment that is shrinking fast. Offering a car in this segment means low volume, high development costs and probably a tiny (if any) profit margin. Cutting big Renaults and most of Nissan makes sense from a European market perspective.

El Relámpago(LZone) - Humanity First! > duurtlang
05/29/2020 at 09:32

But if you take out all of those, there's not much left.

If only EssExTee could be so grossly incandescent > duurtlang
05/29/2020 at 09:41

I think they’re mostly looking for an identity. The conglomerate grew too fast, shoving new models int o every possible market niche so fast that the individual automakers lost their soul. Lineups stagnated and sales plateaued as a result. They’re withdrawing back to the bare core needed to keep cash flow coming in while they look for a new way forward. It's a sound strategy but I think the scale they are taking the withdrawal to is a bit extreme.

duurtlang > El Relámpago(LZone) - Humanity First!
05/29/2020 at 09:43

Only looking at the EU market:

Renault:
>90% of their sales volume are compacts or smaller. Maybe >95%. This is true for almost all non-luxury manufacturers in the EU market .

Nissan:
They are talking about axing also-ran cars that were never really competitive anyway, and cars that are at the end of their life cycle.

Future next gen S2000 owner > duurtlang
05/29/2020 at 10:12

Profitability growth, not volume. Why all businesses don’t follow this is beyond me.

Jb boin > If only EssExTee could be so grossly incandescent
05/29/2020 at 11:39

That’s only the case of Nissan, Renault have always been the practical and quirky cars while having comfort, good driving dynamics and that are not too expensive.

On the other hand, i don’t know how to describe N issan .

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The Renault li neup hasn’t stagnated, lately no model had a lifespan longer than 10 years except the Kangoo that will be updated this year and they usually don’t stick with the same design for long (well, the new Clio for once is looking like its predecessor but its really looking good) .

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These last years i n Europe, Nissan had about 2 to 3 times less market share than Renault but its also important to mention that at the same time as the Renault market share got worse (since around 2005) , the Dacia market shares did the exact opposite (and even got better than Nissan’s in 2018 and 2019) .