Consumer Culture - Renault and Society

All data from public. Just for acedmic propose

1. RENAULT AND THE FRENCH SOCIETY Zhufang C - Stefania D - Maxence F Charlotte L - Guang L - Kuldeep S

2. Agenda 1 Pre – World War II 1898-1945 2 The Thirty Glorious 1945-1973 3 Modern Years 1973-1996 4 New Era 1996-2013 And Beyond

3. Pre-War World II (1889-1945) 1936 - Worker strikes 1914 - Tank support for France during WW I 1934 - Largest factory in France (32000 workers) 1945 – Collaboration with Germans During WW II Pre – World War II (1898-1945) Milestones

4. 1905 1912 1913 1914 1903 tank support for France during WW1 1200 cars/year 800 workers to make a car takes 1 year measure of working time 1 st order for taxis & buses 30% taxis and buses in Paris are Renault 1 st labor strike 4480 cars/year 10% of the French market first assembly line 1922 1905 1912 1903 1934 1936 1945 w orker s trike Renault will always be a symbol for working class and union largest factory in France 32000 workers collaboration with Germans in WWII Pre – World War II (1898-1945) 1898 Renault Voiturette is launched

5. Pre – World War II (1898-1945) High accessibility: n ew era of cars instead of « horses » leads to increase accessibility in different regions and economic development; Increased productivity: m ass production and Taylorism techniques raise productivity; Automotive industry in France: t he fast-growth of Renault helps the automotive industry to become an important segment in France; ECONOMIC ENVIRONMENT Invention of first transmission gear car : t his layout of design was used until the 1970’s in the car industry ; Introduction of the assembly line: enabled Renault in mass production; TECHNOLOGICAL ENVIRONMENT

6. POLITICAL ENVIRONMENT Pre – World War II (1898-1945) World War I : Great support to the French army by providing it with munitions, airplane engines and the famous FT-17 tank; World War II : France is occupied by Germans and cars are forbidden to be produced, so to survive Renault produces army trucks for the German army; Collaboration accusations : At the Liberation, Louis Renault, founder of Renault, is accused of having collaborated with the enemy and jailed ;

7. Seduction : cars become an object of seduction and are related to a certain “art de vivre”; Conveyance : at the same time, a part of the consumers are looking for a practical and affordable car, so Renault launches Juvaquatre ; Agricultural: Renault increased its scope as it realized the need of agricultural machinery in the society because major population was engaged in farming. Pre – World War II (1898-1945) CONSUMERS

8. Pre-War World II (1889-1945) 1945 - Nationalization 1945 – Collaboration with Germans During WW II The Thirty Glorious (1945-1973) Milestones 1960’s – The production doubles (from 2500 to 5000 cars/day 1955 – Pierre Dreyfus is named CEO 1973 – Oil Crisis

9. 1947 1952 1968 1973 1945 First oil shock Pierre   Lefaucheux becomes CEO Pierre Dreyfus i s named CEO 4CV: family car for holiday 33 days of workers strike The Thirty Glorious (1945-1973) 1961 R4: the affordable car for everyone

10. The Thirty Glorious (1945-1973) High Accessibility : small cars popularization stimulates commerical and economic development ; Car Industry : Raising car productivity raises the GDP in France; Oil Crisis : led to greater interest in renewable energies; ECONOMIC ENVIRONMENT Nationalization : in 1945 the Limited company Renault becomes “ Régie Nationale des Usines Renault”; May 1968 : Renault faces big and long-lasting strikes organized by a minority of communist workers who ask for unprecedented welfare benefits. Those lead to agreements between both parties. POLITICAL ENVIRONMENT

11. The Thirty Glorious (1945-1973) Emergence of new social groups, new social roles, standards and status : Analyzing the emergence of the different classes in the society and their materialistic nature Renault started focusing on innovation in cars in order to fulfill demands and to compete with other companies (VW and its Beetle ). Labor unrest in France: lead Renault to introspect which resulted in better working rights and wage hike for workers. SOCIAL ENVIRONMENT

12. The Thirty Glorious (1945-1973) New businesses : Renault helps national reconstruction and promotes work by building utility vehicles, with which French people can develop their businesses. T he popular car: the idea is more actual than ever so Renault launches 4CV, which becomes accessible to all and is therefore a big success. Different needs: In response to the increasing customer demands, Renault launches R16, a more stylish and technologically advanced. Oil crisis : Renault was quick to realize and fulfill consumer’s need of fuel-efficient car during 1973 oil crisis. CONSUMERS Renault u tility vehicle Renault 4CV

13. Pre-War World II (1889-1945) 1996 – Privatization of the company Modern years (1973-1996) Milestones 1970’s – Introduction of JIT production 1977 – Formula 1 sensation 1984 – After the economic crisis a recovery plan is set

14. Heavy Loss Privatization 1980 1981 1984 1972 F. Mitterrand President 1981-1995 1996 R5 economic car for young people Business troubles Heavy Loss Privatization Upmarket car: R 25 Monospace car: Espace Modern Years ( 1973-1996)

15. Modern Years (1973-1996) Recovery plan (after the economic crisis): Renault puts in place a recovery plan to stimulate its economic growth in France. After the lack of success of a Volvo fusion, Renault opens its capital. ECONOMIC ENVIRONMENT During 14 years : deep intimacy between the French socialist government of F. Mitterrand and the state-owned company Renault (see Appendix1). Preparation of Renault privatization: with new Chairman & CEO Raymond Lévy . POLITICAL ENVIRONMENT

16. Modern Years (1973-1996) Introducing just-in-time production : largely decreased the stock and allowed better utilization of resources . First use of turbo engine in Formula One : Renault RS10 was the first Turbocharged car to win Formula One; later, this technology was applied to other mass production car models; TECHNOLOGICAL ENVIRONMENT Negative influence of the industrial revolution: more CO2 emission ( 140g/km) & less recyclable material (5 %). Early adoption of eco-thinking : Technological breakthroughs allow for an early integration of innovative solutions (energy saving) on Renault plants. First steps of sustainable development : Commitment to environmental production made by Renault. ECOLOGICAL ENVIRONMENT

17. Modern Years (1973-1996) State sponsored early retirement program : lowering the average age of Renault’s employees. Reduced workforce : Renault shed half its manual assembly workforce, and increased their skill levels. SOCIAL ENVIRONMENT Better analysis of the consumer society: marketing begins to play an important role. New markets develop : -women and young people -second car for families New habits: Society becomes more interested in leisure and as a response Renault launches Espace . CONSUMERS

18. Pre-War World II (1889-1945) New era (1996-2013) and beyond Milestones 1999 – Signature of the Alliance Renault - Nissan 1998 – Renault celebrates its centenary 2000 – Purchase of Dacia 2008 – First initiatives towards an electric vehicle

19. 1999 2000 2005 2007 1996 1st electric concept car ECO2 Signature to identify ecological & economical range of vehicles p rivatization l aunch of Mégane i nnovation continues 4.8 million car turnover 500 million euros alliance with Nissan purchase of Dacia purchase of Samsung Motors C . Ghosn becomes Chairman & CEO of Renault 2009 Partnership formed with the Key Driving Competences and Transics 2011 2012 2013 2010 Launch of Zoé –Zero-emission compact car The emission of CO2’s average for the range of cars sold by Renault in Europe are among the lowest in Europe Electric vehicles launch: 10/2011 : Kangoo Z.E 11/2011 : Fluence Z.E New Era (1996-2013) and beyond

20. Alliance with Nissan: creates a larger group in purchasing negotiation and becomes the 4th largest automobile group in the world. Purchase of Dacia: low cost cars were developed to accelerate economic growth. Purchase of Samsung Motors: building up an energy efficiency battery plant. ECONOMIC ENVIRONMENT Privatization: in 1996 Renault becomes a private company, French State sells shares and then holds 46% of Renault. Progressive disinvestment of French State as shareholder : because it needs money and wants Renault to be more independent, now it only owns 15% of Renault shares. French State as strong “lobby” : since the crisis of 2007, it puts pressure on Renault to keep its plants in France and not to fire its staff there because of already high unemployment in France and the absolute need of industrialization. POLITICAL ENVIRONMENT New Era (1996-2013) and beyond

21. ECO2 label: guarantees that a car is made of 95 % reusable materials, and its CO2 emission will not exceed 140g/km . Mass production of electric cars : Renault starts a new trend in the car industry and launches Z.E serial electricity cars; ZOE is the most desired electric car with 0 CO2 emission. TECHNOLOGICAL ENVIRONMENT Environmental management system: Successful reduction of energy, waste, noise and toxic discharge consumption. Eco-driving awareness: Developing a system to analyze, interpret and assess eco-driving skills of individuals. Eco-think & Eco-design: Building positive and prosperous automobile future by vision of circular economy. Sustainable development: launching e lectric vehicles. Future prospects: Continuing to decrease CO2 emission to 100g/km by 2016. ECOLOGICAL ENVIRONMENT New Era (1996-2013) and beyond

22. Low-cost cars: the economic crisis raised the need for low-cost cars and made the Renault Logan model a best seller; Society looking for speed : Renault delivered speedy cars; Safety is important: Renault develops new security systems and puts human protection at the heart of its activities; People getting more aware of sustainability and concerned about the society at large : Renault started working on electric car and produced Renault ZOE; CONSUMERS New Era (1996-2013) and beyond

23. Renault as a popular brand: it has always been in the core of French society’s expectations and close to its customers’ lifestyle. Anticipating the needs of a changing society and accompanying its evolution. Renault has aking into consideration the ever changing economic, political, ecological, social, and technological environment. Conclusion

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25. President François Mitterrand commits towards Renault and chooses a Renault 25 as “company car”. He promotes new models in public like the Renault Supercinq in oct. 1984. After three decades of total absence of Renault cars in the government, during his mandate F. Mitterrand reintroduces them in Ministers cabinets. Louis Schweitzer (Renault CEO and Chairman, 1992-2005), Minister of Budget’s chief of staff under F. Mitterrand government is recommended to enter Renault as Finance Controller in 1986. Becomes CEO & Chairman in 1992. Appendix 1 Oct. 1984 : F. Mitterrand driving the new Renault Supercinq in front of Palais de l’Elysée to make the promotion for a car manufacturer in economic troubles at that time L. Schweitzer, emblematic CEO and Chairman of Renault, used to be a very high civil servant in the French Ministry of Budget before entering Renault . Renault during the presidency of F. Mitterand

26. Partnership formed with the Key Driving Competences company to step up training for company fleets and private individuals in order to raising eco-driving awareness Partnership with Transics International to develop a system to analyze , interpret and assess the eco-driving skills of truck drivers in real time . Partner of the Ellen MacArthur Foundation since Sep 2010. (The Foundation works with industry & education to encourage a generation re-think, re-design and build a positive and prosperous future through the vision of a circular economy. The partnership underscores Renault’s ambition to develop sustainable mobility accessible for all.) Appendix 2 Renault’s environmental commitment

27. Appendix 3 Renault’s logo over time