AutoBeta(AutoBeta.net)05/18 Report--

Under the double impact of the continuous shrinkage of the global automobile market and the epidemic situation of COVID-19, the global automobile enterprises are bound to be affected to a certain extent. The Renault brand, which decided to stop selling fuel models because of the poor performance of the Chinese market, seems to have been affected by overseas markets, and will adopt cost-cutting plans to achieve the company's stable development.

According to foreign media reports, Renault has planned to significantly reduce the number of its models, including the Espace, Scenic, and Talisman, a large sedan, even better-known models such as the Espace.

Although the product line to be cut has not been fully determined, the above models are basically in the plan. According to the source: "to put it simply, the number of Renault minivans and cars will be reduced, and the company will mainly produce cross-border cars and SUV."

From the current performance of the global automobile market, it is not difficult to see that the SUV market is rising and becoming more and more loved by consumers, which is very obvious not only in Europe but also in China. It is also natural for car companies to choose and launch higher-selling models for this purpose.

Although the plan to scale back is not Renault's first move, the company adjusted its future plans in 2009, but it still has 40 to 50 models, including sub-brands such as Dacia, RSM, Lada and Alpine.

When the market is stable, car companies can continue to produce a variety of models to ensure market occupation in various sectors, but when the market declines, car companies have to replan their future direction to deal with the current crisis, and model reduction is one of the main plans of most car companies. Nissan, which is also part of the alliance, announced that it would cut its product line by 10%.

In fact, the downfall of Carlos Ghosn (Carlos Ghosn), the former CEO of Nissan Renault-Mitsubishi Alliance, is also one of the reasons why the three brands' position in the global market has been shaken. After all, Ghosn had five years' long-term plans for the alliance, but after his arrest, everything was shelved, so that the development of the alliance came to a standstill and retrogression.

According to Renault's 2019 report, full-year operating income was 55.537 billion euros, down 3.3% from a year earlier; operating profit was 2.1 billion euros, down 30% from a year earlier; operating profit margin was 4.8%, down from 6.3% last year, its first loss in a decade.

But then again, Dongfeng Renault has previously announced that it will abandon the fuel market in China and only promote the transformation of domestic electrification, meaning that fuel models will only be imported. However, judging from the current Renault models in the Chinese market, apart from the Coreao, Correa and Corey models that have announced their delisting, as well as the electric model Renault Eno, only the MPV model Espace is left, and according to Renault's latest plan, that is to say, Renault's last fuel model in China will also be delisted.

Although Renault declined to comment on the plan to cut models. However, from the situation and performance of Renault market in the past two years, we can see that its performance in the market is becoming more and more difficult. How to develop better under the current global automobile market crisis will be a challenge for Renault brands and global automobile brands.

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