News of June 20, 2001
Renault and Nissan plan new moves on the Indonesian market
A fourth example of Renault-Nissan Alliance synergies in Asia-Pacific, in less than one year
Jakarta - Following the announcement of synergies between Nissan and Renault in Japan, Taiwan and Australia, Indonesia is a further illustration of the companies strategies and Alliance synergies in the region.
Renault starts selling cars in Indonesia
Georges Douin, Executive Vice President, Renault, and Angky Camaro, Executive Committee Vice President of the Indomobil group, Nissan’s long-time partner, signed an import and distribution agreement, laying the foundations for Renault's commercial activity in Indonesia beginning in July 2001, through a dedicated company, PT Auto Euro Indonesia.
Indonesia is an important step in the Renault brand’s redeployment in the Asia-Pacific region, headed by Patrick Debrot, Vice President. In line with one of the key principles of the Alliance, Renault's development in Indonesia will draw on already existing Nissan and Indomobil resources in order to maximize synergies, while guaranteeing the separate identity of each brand at all sales points.
The agreement provides for the gradual setting up, as of the end of 2001, of a network of 7 sales outlets. Starting in Jakarta in 2001, it will be extended to Java (Bandung, Surabaya), Bali, Batam, Sulawesi and East Kalimantan to reach over 25 outlets and 18 workshops.
After-sales and servicing activity will be handled by "Cotech" technical specialists who are being trained in the Renault after sales training center in Singapore, for 12 weeks.
Renault targets over 1.5% market share in Indonesia in the medium term and be among the leading imported European brands in the Indonesian market, with an initial sales target of 100 vehicles per month, thanks to the progressive introduction of Kangoo, Scénic and later of Clio and the new Laguna.
Between 1973 and 1990, Renault assembled and distributed the R5, R12, R18 and R21 in Indonesia. The company's distribution contract was not renewed in 1998, however, because of the Asian economic crisis, which was at its height at that time.
Patrick Debrot, Vice President, Renault Asia-Pacific, said: « Renault's return is a strategic long term commitment now possible thanks to the Alliance with the continued support of Nissan and a proactive entrepreneurial approach from Indomobil. The Renault-Nissan Alliance provides a solid base for Renault in Indonesia. »
Nissan’s new position in Indonesia
Since 1987, Nissan has been in partnership with Indomobil, a major player in the Indonesian automotive industry with 10 plants and a total workforce of 8,000 employees. In all, it produced 5,000 vehicles in 2000 including 1,000 Nissans.
Nissan has already announced it will integrate manufacturing, sales and importing operations by increasing its investment stake in its manufacturing partner from 35% to 75%, and by taking over trade rights from its sales partner, both of which are in Indomobil group.
As part of the Nissan Revival Plan (NRP), Nissan is investing globally to build the foundations for lasting profitable growth. The company sold about 1,000 vehicles in Indonesia last year taking a 0.3% market share.
(June 13, 2001)