 "Renault creates Middle-East India and Asia-Pacific region")
French auto major Renault has decided to change its international structure by adding two regions-- new Middle-East India region and Asia-Pacific region to make sure that it has the organisational capacity to achieve the sustainable performance target of the strategic plan.
The company said that as of September 1, 2014, Renault Group is changing its international structure. To support growth during Phase 2 of its medium-term strategic plan, ?Renault Drive the Change?, the current Asia-Pacific region will be split into two new regions:
The new Middle-East India region will include the Middle East, the Gulf countries and the Indian sub-continent and the Asia-Pacific region will include China, ASEAN countries, Korea, Japan, Australia and Oceania.
Bernard Cambier, a member of Renault?s Management Committee, has been appointed Chairman of the Middle-East India Region. His mission will be to boost sales in India and oversee the resumption of commercial and industrial activities in Iran ? in strict compliance with international accords ? and more generally in the Middle East and Persian Gulf countries.
Gilles Normand, also a member of Renault?s Management Committee and Chairman of the Asia-Pacific Region, will focus his operational management on rolling out production-related projects in China and on future strategic development in this region, said the company.
China and India are expected to become the world?s two leading economies within the next 20 years, carrying in their wake countries with strong growth potential such as Indonesia, Thailand and Pakistan. Between now and the completion of the strategic plan, this region of the globe will represent close to 50% of Renault Group?s potential for growth ? its overall highest, said the company.
?gThe new structure will help strengthen operational management and enable dedicated teams to focus on a smaller number of short- and medium-term goals. Mongolia will join the Eurasia region, a market much more similar to its own,? according to Renault.
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The Middle-East India region includes the Indian sub-continent, the Middle East and the Gulf countries. The road map given to Cambier also includes is to increase sales in the short-term in India, where Renault benefits from a strong production base thanks to the Alliance, with the launch of several vehicles, notably based on the CMF-A platform and scheduled between now and the plan?s completion.
The current scope of the Asia-Pacific region which was redefined in 2012 ? is very wide, covering 48 countries and 12 time zones (Middle East, Gulf Countries (GCC), India, China, Korea, Japan, the Association of Southeast Asian Nations (ASEAN), Australia and Oceania). This region is already dominant on a global scale, as it accounts for more than 50% of the world?s population, 40% of global GDP and 45% of the car market. Whereas Renault Group?s average global market share is 3.3%, this figure currently stands at 0.6% in this region.
Renault has three major production sites in Iran, India and Korea. Two years ago, a new push was given marked by the resumption of activities in India following the Mahindra experience, the turnaround of RSM in Korea, the launch of operations in Indonesia and Malaysia (ASEAN), the start of construction of a new plant in China (joint venture with Dong Feng).