RENAULT 2016 – DRIVE THE CHANGE

After the divorce of Renault and Mahindra Group, the former was heard to be working on a new and bigger strategies to operate in the Indian auto market as the solo player and here is the proof to the speculated news. Renault 2016 – Drive the Change is an initiative by the company in order to attain a sustainable development which is also the message in company's tagline, “Drive the Change”. Under this strategic plan the company has covered a span of complete six years with year 2013 being the mid term review year. The strategic plan would help the company establish a long term working plan and set goals accordingly. It will also help in determining the company's quantified priorities for coming 3 years to come. Renault 2016 – Drive the Change is designed with a view to achieve two major aim, firstly ensure the Group’s growth and secondly, generate free cash flow on a lasting basis. For the year 2013, Renault is looking for sales of over 3 million vehicles in and at least €2 billion in aggregate free cash flow.

The seven major levers to achieve the above objectives are to pursue the innovation policy under which the company is planning to come up with zero-emission mobility and three major models decided for the launch include Renault Fluence Z.E., Renault Kangoo Z.E. and Renault Twizy, followed by Renault ZOE in 2012. the company will also come up with all-new 1.6 engine – “Energy dCi 130” which will be the most powerful engine in the market. Secondly to strengthen the product offer where in the beginning four electric vehicles will be launched by 2012 and further new models will follow from 2014 to 2016, Renault’s Z.E. The company will aim for products that will satisfy the internal demand of consumers. Thirdly to reinforce the image of the Renault brand where the company will work for the better quality of product which will in return help the company establish a prominent brand image. Fourthly to ensure the excellence of the distribution network in customer relations where the company would work for the company's all services, in sales, after-sales and sales financing. furthermore to control investment and R&D expenditure where the company would hit for R&D spend below 9% of revenues. Moreover Renault and Daimler are to share the A platform to build future Twingo and Smart models. Moreover reduce costs where the company in association with Nissan came up with monozukuri approach in 2010 which helped in forming an entire value creation chain, starting from design through to delivery to end customers, rather than function by function (purchasing, manufacturing, logistics, delivery). This would help in cutting down the direct cost by 12%. Lastly staying strong in Europe and growing internationally.

Addressing the occasion, Mr. Carlos Ghosn who is the Chairman and Chief Executive Officer of Renault commented that Renault 2016 - Drive the Change will succeed only if the human resource of the company company are properly managed and mobilized as they play an essential role in determining the company’s future. The company will work hard to stand good on the company's stakeholders’ expectations. He also said that the company will grow and groom in such an entity that it will be known for its brand recognition, benchmark product performance and high quality.

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