.
.October
08, 2003
.
This Week:
© 1998
- 2003 Copyright &
Disclaimer
Automotive Intelligence,
www.autointell.com
All Rights Reserved .
For questions please contact
editor@autointell.com
.
Mégane II Sport Saloon made in Bursa for the world market
Renault reinforces Turkey's key role in its international strategy
Photo:
Renault
Paris - The Oyak Renault plant in Bursa, Turkey, is playing a bigger part in the company's international expansion by producing the new Mégane II Sport Saloon for sale worldwide. The vehicle, which is spearheading growth in Renault's international markets, will be exported from Bursa to 84 countries on five continents. The Mégane II Sport Saloon will be launched simultaneously in Turkey and Europe this autumn, and in the rest of the world by the end of 2003. It should enable Renault to consolidate ist lead both on the Turkish market and as the country's number one exporter of passenger cars. |
|
Renault has confirmed that the Mégane II Sport Saloon will be produced only at its plant in Bursa, Turkey. In 1998 Bursa became the first Renault site outside Western Europe to take on the exclusive production of a new model: the Mégane I estate. It was also selected as the pilot site for manufacturing the Clio saloon, which is now exported to 40 countries. Through these choices, Renault has consolidated the key role played by the Turkish hub in its international growth strategy.
Established in Turkey since 1969 through its industrial and commerical partnership with the Oyak group, Renault became the leading automaker in the Turkish market during the first half of 1998. In 2003 the company is well on the way to being the market leader for passenger car sales for the sixth consecutive year, with 19.2% market share at the end of July 2003. Production of the Mégane II Sport Saloon will help to underpin Renault's ranking on a market where the C segment accounts for over 40% of sales. Despite the instability of the Turkish market, it has major growth potential in the medium term and Renault is determined to maintain its lead there.
The Bursa site, which has introduced the quality standards and work organization methods used in the Renault Production Way (French acronym SPR), is Renault's biggest plant outside Europe, with production capacity of 162,000 vehicles a year. It has the advantage of several international parts manufacturers working in partnership with Turkish companies.
Initially devoted solely to the Turkish market, the site has come to focus on exports, which now account for over 80% of production. Between 1998 and 2002, Oyak Renault increased its sales abroad tenfold. The Mégane II Sport Saloon will be sold in 84 countries on five continents.
Oyak Renault has invested €200 million in manufacturing facilities for the Sport Saloon - a record sum which reflects the diversity of the models it produces. With two shifts, the plant's capacity should grow to more than 700 vehicles a day in 2004.
The plan to make a three-box version of Mégane II took 26 months to prepare, and brought together a team of French, Italian and Turkish personnel led by a Turkish manager.
I - A plant with European standards and an efficient industrial network
The Bursa plant, which opened in 1971, combines bodywork and assembly facilities, with an annual capacity of 162,000 vehicles, and a powertrain unit. It now provides jobs for 4,000 people. The plant complies with Renault's European manufacturing standards on quality and competitiveness, and uses the work organization methods introduced as part of the SPR: a simplified system of assembly by modules, just-in-time parts supply, introduction of Total Quality tools and procedures, basic work teams and shorter command lines (five people instead of the previous seven). In 1996 the bodywork-assembly and powertrain units at Bursa obtained ISO 9001 certification, and this was renewed in 2002. Oyak Renault was the first Turkish automaker to be awarded ISO 9001 certification.
Renault also relies on a substantial network of Turkish suppliers who have grown alongside Oyak Renault. They work in partnership with over 50 world-scale parts manufacturers such as Faurecia (seats), Bosch (brakes), Autoliv and Visteon (interior trim). The quality and density of this network of manufacturers has helped the Bursa plant to achieve more than 60% of local content for Mégane II.
With the Sport Saloon, Bursa is continuing the modernization process started for the production launch of the Mégane I saloon and estate and the Clio saloon. The plant has invested €200 million to comply with the technical requirements of the latest project, including:
€22.9 million for stamping, for the production of new tools specially designed for the Sport Saloon.
€32.2 million for body-in-white assembly, where the rate of automation has risen from 15% for Mégane I to 40% for Mégane II, which uses 54 robots.
€15.9 million for the paintshop, to be used for a new building to house anti-corrosion facilities.
€11.2 million for assembly, to build a new assembly line in addition to lines for preparing doors, underbodies and engine subframes.
Another €12.6 million have been invested in the powertrain unit, which makes K4 petrol engines (1.4 and 1.6 litres), JH/JR manual gearboxes and front and rear suspensions. In addition, €67 million have been invested in partner suppliers.
II - Turkey at the heart of Renault's international growth
Turkey is a vital part of Renault's profitable growth strategy, which aims to achieve half of all sales outside Europe by 2010. This is because of Renault's domination of the Turkish market and the country's high growth potential.
Renault's facilities in Turkey also serve as a regional hub for production and exports. Oyak Renault obviously looks first to its nearest markets - the Central Asian republics, the Gulf countries and the Middle East. It is also hoping to conquer Russia, Romania and Bulgaria, as well as North and sub-Saharan Africa.
Over the past two years, the Bursa plant has become a major production centre for exports to Western Europe, Eastern Europe, the Middle East and North Africa. Oyak Renault now exports over 80% of its production to 55 countries, and the Sport Saloon will boost that figure to 84%.
In 2002, 40,635 Méganes and 46,564 Clio Symbols were exported, mainly to Western Europe, Central Europe and North Africa.
Renault has been market leader since 1998
Despite the economic crisis plaguing the country since 2001, Turkey is still a strategic market for Renault, which has been the leading brand there since 1998. In 2002, Renault was the best-selling brand for passenger cars for the fifth year running, with market share of 17.6%, and is poised to keep its lead for a sixth year, having achieved 19.2% penetration at the end of July 2003.
Clio Symbol, the saloon version of Clio made in Bursa, was the bestselling car in Turkey in 2002, with 8.5% of the passenger car market. Its lead was boosted during the year by the launch of the new Clio Symbol, with a revamped front face and 1.5 dCi engine. The car also made a major contribution to the overall increase in diesel sales in Turkey. Meanwhile the Mégane I range, which is being phased out, achieved third place with market share of 5.3%.
Turkey offers high growth potential
The Turkish automobile market took a sharp upturn from the 1980s, with more than 440,000 passenger cars sold in 1993, all brands combined. Since then it has been hit by three economic crises: in 1994, at the end of 1998 and in 2001. The most recent collapse slashed total sales to 135,000 after an all-time high of 456,000 in 2000. The market continued to fall in 2002, dipping below a total 95,000 cars sold.
However, 2003 brought some more hopeful signs, and by the end of July sales figures were back up to those recorded for the first 11 months of 2002. Although sales are still well below their 2000 level, the gradual recovery observed in recent months could bring the total market back up to 175,000 passenger cars in 2003 and 225,000 in 2004, probably reaching 500,000 before 2010.
Turkey has major growth potential because it still has a very low rate of car ownership - 67 vehicles per 1,000 inhabitants, and a total of only 4.6 million vehicles on the roads for a population of 67.8 million. Despite a high rate of inflation that fluctuates around 40% per year, Turkey also has the advantages of a highly skilled workforce, good economic potential and geographical proximity to Europe. The number of automobile brands available in Turkey has grown steadily and now stands at about 30. Competition has become stiffer recently due to an influx of vehicle imports after the Customs Union between Turkey and the European Union came into effect, abolishing import duties from January 1, 1996. The proportion of imported cars stood at 62.5% in 2002, 57.9% in 2001 and 54.7% in 2000.
III - An increasingly modern range
The Mégane II Sport Saloon is the fourth new-generation vehicle to be built in Turkey after the original Mégane saloon went into production in September 1997, the estate version in September 1998 and the Clio saloon in 1999. Launched in September 2003, the Sport Saloon constitutes the core of Renault's range in Turkey. And even though the Mégane I saloon is being phased out, at the end of July 2003 it still topped a segment that accounts for over 40% of the market, and took half the sales in that segment. The Mégane II Sport Saloon should maintain loyalty from Mégane I customers, who represent a fairly traditional market of family buyers, while at the same time winning new customers attracted by ist modern design and state-of-the-art technology. The Renault range made in Turkey is completed by imported models. After Scénic, Scénic RX4, Clio II and Laguna II, Renault introduced the Mégane II Hatch in the summer of 2003. The rest of the Mégane II family will become available in Turkey during 2004. As for LCVs, Renault already sells Kangoo Express and Master in Turkey and will shortly be adding the new Trafic.
(Sept 2, 2003)
| .
Homepage News Companies Management Publications Events Careers Services Discussion Guestbook Search . |