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RENAULT IN ROMANIA

Renault is enjoying huge international success with Logan, the flagship vehicle of its Romanian subsidiary, Dacia. Romania is now a key component in the Group’s strategy of international expansion. After modernizing Dacia’s historic plant in Pitesti, Renault set up a design centre and an engineering centre, both of which are complete entities. Dacia Duster, launched in 2010, is the first vehicle produced by these centres.

A mature automotive market 

Since joining the European Union in 2007, Romania has experienced brisk economic development. The Romanian automotive market is now considered as “mature”, with more than five million passenger cars on the road in 2010 for 22 million inhabitants. Annual output has stabilized at around 300,000 units with demand driven not by first-time purchases, but by renewal.

Dacia, an expanding brand 

Renault started working with the Dacia brand in the early 1960’s. After a long interruption, Renault took the company over in 1999 with a majority stakeholding. In the space of a few years, Renault turned the ailing company into a driving force for the Group. Specializing in robust, economical models, Dacia designs vehicles primarily for new markets.

 

Pitesti (120 km from Bucharest) is the main production site for Logan, supplying 47 countries. Logan is sold in all European markets, as well as Turkey, Algeria, Ukraine, the Middle East and Central Africa. The plant also makes parts and powertrain components.

 

The Pitesti plant has ISO 14001 certification and also holds the SMR (Renault Management System) label. It currently has more than 10,000 employees. The site has been extended to boost production capacity (up to 400,000 vehicles/year in 2009).

New installations 

Renault set up Renault Technologie Roumanie (RTR) in 2006. This engineering centre works primarily on the development of Logan. RTR has three sites (Bucharest, Pitesti and Titu) and also gained a test centre in 2010. The centre has nine types of track with a total length of 30 km and around one hundred test benches to test the resistance of vehicles and replacement parts to cold, heat and rain.


In 2007 the Group also set up a styling office, Renault Design Central Europe (RDCE) to create the Logan vehicles of the future. With the bulk of market growth now taking place outside Western Europe, the opening of RDCE is strategic for the Group. To be competitive, Renault needs to be close to local customers and to fast-changing consumer tastes on new markets.

 

Renault has invested one billion euros in Romania since 1999, with the Pitesti plant, RTR and RDCE.

An expanding range 

Renault Technologie Roumanie

The saga of Logan, Dacia’s flagship brand, began on June 2, 2004, with the official launch of the first sedan. The car was an immediate success and the range expanded: Logan Prestige and Logan MCV (station wagon) in 2006, Logan Van in 2007 and Logan Pick-Up in 2008. Today, Logan is produced in seven countries: in Romania, but also in Russia, Colombia, Morocco, Iran, India and Brazil. Logan accounts for one Group sale in five.

 

The Group has taken the Logan programme another step forward with Sandero, another vehicle with global ambitions. Launched in early 2008 in South America and mid-2008 in Europe (badged by Renault), this new hatchback pursued its development in new markets in 2009, with Pitesti producing Sandero vehicles badged by Dacia.

 

In 2009 Dacia also set its sights on the SUV segment with the launch of Sandero Stepway, a wider version of Sandero. In 2010 this model was joined by Dacia Duster, an urban SUV/off-roader with the ability to tackle all sorts of terrain and climb all sorts of obstacle. These sophisticated, affordable models attract a young, dynamic customer base.

The Logan, Sandero and Duster programmes enable Renault to position itself on high-growth markets.

 

Romania in brief (2009 figures):

 

  • Capital : Bucharest
  • Area : 238,391 km²
  • Population : 22 million
  • GDP: US$ 165,980
  • Roads: 153,359 km
  • Number of new vehicles sold: 130,193

 

Key data for Dacia (2009):

 

  • Romania’s leading vehicle manufacturer, with market share of 29%.
  •  99.43% owned subsidiary of Renault.
  • Workforce: 17,813 employees (o/w 15,432 Dacia employees) i.e. 14.7% of the total Group workforce.
  • Production: 296,105 vehicles, or 13.1% of total Group output.
  • €2.2 billion in revenue.

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