cadyman
12-02-2006, 03:58 PM
PARIS — Renault's charismatic and highly successful CEO, Carlos Ghosn, announced an ambitious restructuring plan for the French automaker today.
It targets a big jump in profit margin, from the current 3.2 to 6 percent, and a renewed focus on quality. Ghosn clearly used his track record in turning around Nissan, of which he is also CEO, as a template for the Renault plan.
Renault intends to up annual sales by 800,000 vehicles and will bring out 26 new models between now and 2009. Significantly, The Wall Street Journal reports, Ghosn said the target for the next-generation Laguna sedan, which comes out in 2007, will be to see its quality rated in the top three in Europe by independent evaluators.
Ghosn says the plan can succeed by increasing productivity at Renault's factories and focusing more on "the needs and aspirations" of customers, not by cutting jobs.
It targets a big jump in profit margin, from the current 3.2 to 6 percent, and a renewed focus on quality. Ghosn clearly used his track record in turning around Nissan, of which he is also CEO, as a template for the Renault plan.
Renault intends to up annual sales by 800,000 vehicles and will bring out 26 new models between now and 2009. Significantly, The Wall Street Journal reports, Ghosn said the target for the next-generation Laguna sedan, which comes out in 2007, will be to see its quality rated in the top three in Europe by independent evaluators.
Ghosn says the plan can succeed by increasing productivity at Renault's factories and focusing more on "the needs and aspirations" of customers, not by cutting jobs.