Wednesday, May 20, 2015

With Kwid, Renault takes the offensive in the “low cost” – The World

Le Monde | • Updated | By

It is called Kwid. This small 4 × 4 Urban Renault Duster for-like, was unveiled Wednesday, May 20 by Carlos Ghosn in Chennai, the Indian city where is anchored the Renault-Nissan alliance. This new vehicle of 3.68 meters (almost the length of a Twingo) will be marketed this fall from 300 000 (4,200 euros) and 400,000 rupees (5,500 euros) in India. It then arrives in Brazil. Europe, it will be later.

“The priority within three to four years, it is India, the Asian region and other emerging markets. For now, we do not plan to launch in Europe, says Ghosn, boss of Renault and Nissan . That said, one must be careful. In the early 2000s, Renault did not intend to sell the Logan in Western Europe. Today, Logan and his cousins, such as Sandero or Duster, are a big hit … “

With a new platform, a new engine, a new gearbox This vehicle emits little CO 2 , and respects the Indian security regulations. The Kwid should allow Renault to finally break the Indian market for cars less than four meters and less than 5 500 euros, a quarter of the Indian market, and to reach 5% market share it aims to medium term.

Today, the diamond brand in India is the first European manufacturer with 1.5% market share, far local heavyweights Maruti-Suzuki (46% market share) and Hyundai ( 16%). With the equipment of relatively upscale Kwid for this segment, Renault has a chance to succeed.



Eight anticipated models

2010 After the failure of his project vehicle retail price of 2,500 euros with Bajaj, Renault and Nissan found the impossible equation to build a vehicle less than 2000 euros! This is more than two times less than the Logan, seen by competitors as both technical and economic prowess.

Kwid prefigures a new range of small affordable vehicles. In the coming years, eight models could be assembled on this new platform for Renault, Dacia, Nissan or Datsun also.

“In 2010, to develop small vehicles, we thought about shortening the platform of the Logan, which is used for vehicles over 4 meters , recalls Arnaud Deboeuf, now vice president of the Renault-Nissan alliance. Nissan seeking its way to enter this market. In 2011, we came together to invent this new platform will be adapted to vehicles from 3.20 to 4 meters. “

” By working together, we could not only share the initial investment and provide sufficient global volumes to negotiate prices with suppliers “ Complete Vincent cobee, the CEO of Datsun, which will launch early 2016, a vehicle on the platform Kwid.

Overall, the two groups have invested 420 million euros for all the news and creating an engine plant, and the adaptation of the plant. Far from the billions spent by its competitors for such projects. “It will still flow in the medium term at least 500,000 vehicles annually to monetize the platform …” , says one in the group.



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To accomplish this feat, Mr. Ghosn gave the keys to the project Detourbet Gérard, one of the fathers of Logan. At 67, he notes a last bet “for fun” , he said, two years under the Indian heatwave later. He got carte blanche for the boss with one goal: getting a rate of return to double-digit future platform …

“Unlike Logan, where they had taken many existing elements at Renault, the platform Kwid was created from a blank page, explains the engineer. But without the know-how accumulated for twelve years by Renault in the Logan program, we could not have done. “

Some 350 people, including many former adventure Logan and Indian engineers at the research center of the alliance, gathered for the project. “We are isolated from the rest of the company so as not to be polluted by conventional modes of operation” , says Detourbet.

To adjust its costs to the market India, the team puts everything flat. The 2500 vehicle parts are passed through the mill with suppliers of raw. Finally, 98% of the components are “made in India”! “We redesigned the pieces to make them simpler to produce and assemble says -t it. In India , we found extremely frugal production process. By retouching both the product and the process, we have made significant savings … Simplicity saves a lot of money! “

So the” fork “of the new gear box (where the shift lever engages himself) was simplified to be” welded steel “Hand … “The design of a European production range required by a robot: too expensive …” , Mr. slice Detourbet that “obtained from local suppliers, local prices, not those for foreigners … “

A factory without walls

If the assembly of the vehicle is no different from other lines in the world, with all the same fewer robots, the new engine production facility is an optimization jewel. To refresh the place, the plant does not … wall. An asset in a country where humidity is 80% and the heat between 30 and 40 degrees.

No machine is fixed to the ground. “This place is very flexible. By moving machinery, production capacity can be easily increased and compact the “, says the project boss. Only downside, the new location does not meet any standard production Nissan or Renault! On this issue, as on others, tension rose between the teams in India, Renault and Nissan. “The engineering of the two groups have had difficulty accepting this exotic project …” , a source confirms. In 2013, Mr. Detourbet has also not hesitated to resign to deal with blockages Ghosn … Declined by the CEO.

“For such a project, there conflicts on all levels, “ confirmed a source. “ When we have to reinvent everything, management made a rough equation party” , confirms another . “If Renault has succeeded in developing low-cost ultra-efficient vehicles, while all other major groups failed is that it has engineers who do not toe the line, Complete a consultant . Pirates that do not hesitate to go beyond the system. “

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