Popular cars will be a thing of the past at Renault. The global president of the automaker, Luca de Meo, announced this Thursday (11) the new positioning of the brand in Brazil. The news will be part of an investment cycle that should start in 2022.
“We have changed many things, we made very tough decisions, but we already see a light at the end of the tunnel, the worst is behind us. Our operations in Brazil were in a very complicated condition”, said the executive on Thursday (11), during a visit to the Renault plant in São José dos Pinhais (PR).
“As we can return to growth, we will try to position Renault at another level in the market. Not that we will become a niche brand, but we will have to focus on higher level products.”
The new strategy means the retirement of the Logan and Sandero models, which should remain in line “for another couple of years”, according to the president of the French automaker. This path has been taken by other brands in the country, in an exchange of volume for profitability.
Renault’s decision includes the launch of “zero emission” vehicles. Luca de Meo confirmed the arrival of the electric Kwid in the country in 2022 and stated that, possibly, this will be the most affordable car in the category. This position is currently occupied by the JAC e-JS1, which costs R$150,000.
The president of the French automaker stated that the new strategy will integrate different markets through global products. “There will be no first and second division countries.”
Therefore, it is expected that medium-sized models return to Brazil, such as the Mégane line. There will also be a good number of SUVs, which should arrive in hybrid and electric options.
Luca de Meo, however, declined to reveal what amounts will be invested in the country for the launch of new cars. The executive guaranteed that there will be a lot of local content, which will require large contributions to the factory in Paraná, which currently employs around 6,000 employees.
With the crisis caused by the shortage of parts, especially semiconductors, Renault saw productivity drop. The poor results led to the opening of a voluntary redundancy program, which was completed in October with approximately 500 dismissals.
The brand registered 94.5 thousand licenses between January and October in Brazil, a drop of 8.2% compared to the same period in 2020.
Although they have a global alliance, Renault’s plans are independent of those presented by Nissan. The cooperation between the brands involves share swaps, but it is different from mega-mergers like the one that brought together PSA Peugeot Citroën and FCA Fiat Chrysler under the umbrella of the Stellantis group.
Renault sold 599,000 vehicles worldwide in the third quarter. The number represents a drop of 22.3% compared to the same period in 2020 and is explained by the semiconductor crisis.
Luca de Meo calculates that the company will stop producing 500,000 cars this year due to problems in the supply of components.
Turnover fell 13.4%, and the automaker explains that the result would have been worse if the company had not bet on more profitable products. It is this strategy that is now arriving in Brazil.
In addition to the French brand, other automakers have announced investments focused on more profitable products.
On Friday (5), Volkswagen presented a new cycle in the country, made with local capital. R$ 7 billion will be invested between 2022 and 2026 in the development of a new family of compact cars.
The first will be the new Polo Track, a more affordable version of the hatch with confirmed production for the factory in Taubaté (São Paulo countryside). The launch is scheduled for the 2023 line, already with a renewed look. With the arrival of this option, the current Goal will go out of line.
General Motors is going through a cycle of R$ 10 billion in investments, which includes the development of the new Montana pickup, which will compete with Fiat Toro.
The contribution had been announced in 2019, but was interrupted due to the pandemic and resumed earlier this year. According to the automaker’s forecast, this cycle should extend until 2024.
Next week, BMW will reveal a new contribution to the plant in Araquari (SC), where it assembles most of the cars it sells in Brazil.
The investments confirm what Anfavea (association of assemblers) has said: popular cars should be forgotten, they will be part of the past of the national industry.
“The Brazil of ten years ago is not the country we will see in ten years’ time, at least that’s what I hope,” said Luca De Meo.
The journalist traveled at the invitation of Renault do Brasil
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