RENAULT TRUCKS:
REMANUFACTURING AS A STRATEGIC ACTIVITY
Company’s Background
History
In 1984 Marius Berlietcame up with a design which is actually comprised ofa single cylinder engine. At the same time as he manufactured his single cylinder engine and he introduced his first ever petrol driven car.
After the long struggle and devotion of many years he came up with his truck in 1906. At the same passage of time Louis Renault presented the first commercial car. During the decades between 1952 and 1974 many forces got united with Berliet. These forces consist ofRochet, Citroën Poids and famous Camivad. Saviem came into existence back in the year 1955 by the merger among Renault Trucks and Somua.In the year 1978 there was a histrionic boom in the industry by the merger of two massive players that’s Saviem and Berlit which resulted in the creation of RVI (Renault Vehicles Industries). Renault Vehicles Industries remain its focus on further and international development by acquiring the American Brand Mack and Dodge Europe back in the year 1990. By the year 1992 it retitled itself as the Renault VI and by the year 2001 it becomes part of the world famous Volvo group by obtaining around 20% of its shares and having some defensive rights on its equity. In the same year they came up with a new global name of “Renault Trucks”.
Renault Trucks Expansion and Growth
Renault Truckshave made the success story by making its presence possible in around 80 countries across the entire worldwith the helpof differentelements like sales and service centers, different importers and subsidiaries which were present across the globe for making the delivery system more effective. There were around 15000 people employed in Renault Trucks which reflects that they are a quiet gigantic organization. There were found quite strong in the European market because of having anincredible number of 1500 sales and service centers. In Volvo Group, the Renault trucks were found largest at by taking second place in terms of business development area. In 2007 they produced a splendid number of 57,000 trucks. France and Europe were the leading sales fields for Renault trucks having a share of around 44% each, followed by other international regions which consist ofabout 12%. Renault trucks offered anextensive range of trucks to their prospective customers, which include both heavy and light trucks. Additionally, they also manufactured the military vehicles which add value to their optimistic vision for reaching new heights. Experts in the industry present figures related to the remanufactured parts usage and mentioned that less the 3% of the trucks and cars across the globe comprises of remanufactured components.
The CoreConcern (Problem)
Being the industrial manager, In June 2001 Mr. Jean-FranoisHilico has been assigned a task to come up with a development strategy and then recommend to board of Renault Trucks for further enhancement in remanufacturing business. The core purpose of this remanufacturing business is that they rebuild the used parts at a nominal cost and make them operateas new,for a longer period of time by meeting the standards. There were overall three choices out of which one has to be recommended. The key aspect that needs to be focused is that the factor of profitability should not be highlighted only. They need to consider other possible issues like safety, environmental safeguard, and other difficulties while working on the previously used parts. Pros and Cons needs to bring in concern for all the three conceivable options so that a superlative option could be selected. The three options include thesubcontractingof the specific job to a third party, enlarge and streamline the overall procedures in the current plants and the last one was to build a completely new plant.
InternalAnalysis
- Employee Turnover and Market Presence
There internal strength was quite satisfactory which was entirely based on different elements, in which they look for a competitive benefit. These sustainable strengths compriseof elementslike physical resources, manpower and strong Financials. As mentioned in the case they are having an extensive pool of employees, which comprises of around 15,000 people. Theirgigantic network could also be the part of their strength because there were present in around 80 different countries across the globe. They have anenormous number of 146 dealership network out of which 32 were present in French marketplace..................
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