Daniel is a sailing fanatic. According to him, if he could only bring one book with him, it would be one about sailing. To some extent, managing a company is just like steering a ship. It is about finding the right direction and then overcoming turbulences that come your way until you reach your destination.
Daniel summarized Dongfeng Renault’s goals thus: build a factory; produce high-quality products; and sell imported vehicles from French Renault.
According to plans, the company will establish a factory with a production capacity of 300,000 units, including 150,000 for whole vehicles and another 150,000 for engines. The factory was approved not long ago and is now open for bidding. Construction is expected to be completed next year.
“Why is the production capacity of whole vehicles only 150,000 units? Because the government only approved that much…But anyhow, we must make a start first.” Apparently, to Daniel and Dongfeng Renault, the 150,000 unit production capacity is far smaller than what they envisage.
Nevertheless, as Daniel has said, a small start is always better than stagnation. At least, with the support of the 150,000 unit production capacity, the company can roll out 2 domestic models in 2016. “The first model we release is definitely not a Koleo, but a brand new product.” It is reported that this new model is one of the 6 models at Renault that are designed based on the “cycle of life” concept.
The company’s third goal – selling imported vehicles from French Renault - should be the first one to be realized. Dongfeng Renault will combine the sales of imported and domestic models in the future. Next year, Renault China’s entire dealership network will be transferred to the joint venture, which is bound to spark heated discussion and speculation about Renault China’s future. According to a source at Dongfeng Renault, Renault China’s future role needs to be redefined, or it might act as a go-between for Dongfeng Renault’s import of vehicles from French Renault.
Dongfeng- Renault- Nissan position themselves as a “golden triangle”, sharing resources, furthering cooperation and seeking common development. Evidently though, the toddling Dongfeng Renault is far from being an equal to Dongfeng Nissan. But as Daniel has pointed out, Dongfeng Renault’s primary task now is to launch a new model at the start of 2016 as scheduled, and thus cement its position in China. But a product of such magnitude is never easy to develop.
This is indeed a race against time. A brand-new joint venture, a most competitive market segment, a group of fickle “judges”, a war with no turning back…Even with the “best ally” on its side, Dongfeng Renault needs to build up its own muscle and bone in the shortest time possible to win market recognition. As the famous Taiwanese writer Lin Qingxuan has once written: if you keep on racing against time, you will finally succeed. Now Dongfeng Renault is about to test this theory.