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RENAULT IN ROMANIA

The Renault group is enjoying unprecedented global success with Logan, flagship vehicle of its Romanian subsidiary, Dacia. Romania has become a key component in the Group’s strategy of international expansion. After modernizing the historic plant in Pitesti, Renault has set up a design center and complete engineering center.

A mature automotive market 

Romania has seen rapid economic development since joining the European Union in 2007. The gap with Western Europe has narrowed to the extent that this market is now considered as “mature”. Annual output now exceeds 300,000 units and demand is driven not by first-time purchases but by renewals.

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).


Logan, an international success 

The Logan saga started on June 2, 2004 with the official launch of the first sedan. The car was an immediate success and the range was extended: Logan Prestige and Logan MCV (estate) in 2006, Logan Van in 2007 and Logan Pick-Up in 2008. Today, Logan is manufactured in seven countries: Romania, Russia, Colombia, Morocco, Iran, India and Brazil. It accounts for one car in every five sold by the Group.

 

The Group has taken the Logan program another step forward with Sandero, another vehicle with global ambitions. Launched in early 2008 in South America and mid-2008 in Europe, this new hatchback will pursue its development into new markets in 2009.

 

With the Logan program, Renault is able to position itself on high-growth markets.


New installations 

Renault Technologie Roumanie

In 2006, Renault set up Renault Technologie Roumanie (RTR). This regional engineering center works primarily on the development of Logan. With bases at three sites – Bucharest, Pitesti and Titu – RTR expects to have a workforce of 3,000 at end-2009. It will also gain a test center, currently under construction in Titu. The center will have nine types of track with a total length of 30 km and around one hundred test benches designed to test the resistance of vehicles and spare parts in cold, heat and rain.

 

In 2007, the Group also created a styling center to design the Logan vehicles of the future. The opening of Renault Design Central Europe (RDCE) has strategic importance for the Group, given that growth is stronger in regions outside western Europe. Renault’s success in increasing its competitive edge will depend on its ability to remain close to local customer bases and to reflect fast-changing tastes on new markets.

 

Renault has invested €1 billion overall in the Pitesti plant, RTR and RDCE.

 

 

Romania in brief (2007 figures)

 

  • Capital : Bucharest
  • Area : 238,391 km²
  • Population : 22 million
  • GDP: US$ 165,980
  • Roads: 153,359 km

 

Dacia : key data

 

  • Romania’s leading vehicle manufacturer, with market share of 29%.
  •  99.43% owned subsidiary of Renault.
  • Workforce: 14,811, or 11% of the Group total.
  • Production: 222,891 vehicles, or 8.7% of the Group total.
  • €2 billion in turnover.

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