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Dongfeng Renault, which had caught up with the last train of the auto joint venture, recently joined Renault China in launching a new dealer recruitment. Based on the original imported car dealers, it promoted the sales channels to move downward to the second and third tier markets. Prior to this, Dongfeng Renault quickly integrated the channels of imported cars to ensure the maximum benefit of the joint venture company.
Thanks to Dongfeng and the Renault-Nissan Alliance's "Golden Triangle" strategic cooperation, Dongfeng Renault will join hands with Dongfeng Nissan to set up an R&D center, which will enable it to rapidly promote the localization of new products.
Advance to second and third tier channel sink <br> <br> Dongfeng Renault will launch its first domestic models in 2016. In terms of channels, Dongfeng Renault’s parent company reached an early conclusion of the basic principle of maximizing the interests of the joint venture company, which confirmed the strategic structure of integrating the imported vehicle business into the joint venture company as soon as possible.
Based on the existing more than 90 Renault importers, Dongfeng Renault plans to build 150 sales stores by the end of 2015 and build a more complete network system when domestic vehicles are listed. In terms of development model, Dongfeng Renault dealer channel will be authorized by Dongfeng Renault and Renault China, and the grid will realize sales of domestic models and imported models. In the form of storefronts, outside the franchise stores, different levels of markets will be covered through the models of city showrooms and satellite shops. In the construction of the storefront, the design standards and service requirements will also be unified. According to reports, this recruitment plan will strengthen the penetration of second-tier, third-tier and even fourth-tier cities on the basis of first-tier cities, covering a total of 70 cities in 25 provinces.
Dongfeng Renault Executive Vice President Hu Xindong introduced that Dongfeng Renault will build a "1+1+1" network to expand the layout, that is, a dealer + an urban showroom + a satellite shop, through the local dealer to cover as much as possible The vast majority. At present, Renault's imported cars are the largest in the Chinese market in the east of China, and the future development will focus on the west, north, and south.
Dongfeng Renault will further enrich the imported vehicle product line before the domestic vehicle is listed. This year will introduce a sports car with a 2.0T engine - Megane RS; next year will be introduced in Europe is very popular B-class SUV - Captur.
Hu Xindong also stated that he is currently discussing with Renault headquarters the future brand positioning of Renault in the Chinese market, which will be extended and deepened in the original “casual luxury†position. “The Renault brand will be younger, more athletic and forward-looking, driven by a change-driven strategy.â€
Two SUVs will be launched in the first phase
Dongfeng Renault has planned an initial production capacity of 150,000 vehicles and will be used to put into production a C-class SUV and a D-class SUV. Since Dongfeng Renault is a joint venture on the basis of restructuring Sanjiang Renault, it does not currently have the qualification for car production and can only produce SUVs and MPVs. In accordance with industrial policies, Dongfeng Renault must achieve a profit of 1 billion yuan within three years, a profit rate of 80%, and a bank debt ratio of no more than 50% before it can apply for car production qualification.
Hu Xindong introduced that Dongfeng Renault's first production of the C-class SUV will be a new global model. However, Dongfeng Renault will not only be positioned in the SUV market. The future product line plans include different levels of SUVs and sedans, as well as electric vehicle products and joint-venture products. He also believes that in the joint venture independent products, the more realistic and efficient way is to produce pure electric cars. Because new energy vehicles are not subject to the qualification of car production, Renault has introduced leading electric vehicle technology.
Dongfeng Renault has also planned to build R&D to strengthen its product localization. Dongfeng Renault, president of the industry, introduced the introduction of Dongfeng Renault will invest 500 million yuan to build R & D center, and jointly establish a research and development center with Nissan. “We will not double investment in the same project.†The R&D center will invest in the localization development of two domestic cars and subsequently support the business of the joint venture company.
Jointly establishing Dongfeng Nissan’s R&D center, which is based on the strategic alliance between Dongfeng and Renault-Nissan, focusing on synergies. Hu Xindong believes that in terms of synergy, Dongfeng's parts and components companies will continue to cooperate with Dongfeng Renault and will have a synergy amount of 5 billion yuan. The synergies in the automotive equipment business, horizontal business, and auto finance business will be even greater. However, a single joint venture must also be independent and competitive. "If there is no competitiveness, there will be no coordination. Regardless of whether there is an asset relationship, everything is based on market rules. This is all the thresholds."
