INTRODUCTION OF THE ORGANIZATION

Marius Berlet, in 1984 designed the first cylinder engine and then his first petrol driven car.Then, in 1906 he introduced his first truck, at about the same time Louis Renault came up with his first commercial vehicle and then introduced his buses for Paris.

The years from 1952-1974 saw the merger of trucking giants. In these years Laffly, Rochet Schneider, Camiva and Citroen Poids joined hands with Berliet. After a couple of years Saviem was created after the merger of Renault and Somua. Finally, in 1978 Berliet and Saviem merged to form the only French truck manufacturing company named as Renault Véhicules Industriels or Renault Industrial Vehicles in English. This company further bought other international brands like Mack in 1990. In 2001 Volvo group bought Renault and they gave it an international name as “Renault Trucks”.

BUISNESS EXPANSION

Volvo group comprised of three brands, Volvo, Renault and Mack. In late 2001, Volvo Global trucks, other than just being the European leaders in truck manufacturing, was also the second largest truck manufacturers in the World.

Renault trucks being the second largest brand of the Volvo group produced 57000 trucks by the end of year 2001.

They offered different ranged vehicles from light trucks to be used in the cities to heavy long-haul trucks and military vehicles. This has helped Renault to expand themselves in 80 countries with 15000 employees, which actually reflects upon the size of the manufacturing company. They have strengthened their sales and service centers with over 1500 sales and service centers only in Europe making their delivery system much better. In French market, where there are a total of 146 dealers- 32 were owned by Renault trucks including 273 service centers. The company manufactures the vehicles only after a customer places the order and then the manufacturing takes place in three different plants based on their sizes.

Renault trucks Re-manufacturing Harvard Case Solution & Analysis

BUSINESS ISSUES:

Jean-Franc ois Hilico was hired as an industrial project manager in June 2001. The board of directors assigned him the task which was related to business truck re-manufacturing. He had to present the ideas on how the company can repair the used parts at minimal cost and can reuse them as per the set standards. They needed to make sure the quality was up to the mark plus they were saving the cost out of it.

Renault came up with the idea of re manufacturing because they were facing some environmental problems in addition for stronger revenues.

Now, there were three options that were presented and one had to be chosen from those three, keeping in mind that other factors were also to be considered apart from the profitability factor. The other factors are as follows:

• Environment
• Safety
• Difficulty in repairing the parts

The negatives and positives were to be considered for each factor and the best decision was to be taken after that.,............

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