R
E
N
A
U
L
T
feature
P repare F or
R enault Xavier Gobille, CEO of Renault South Africa, proudly speaks about the accomplishments and vision of his team. Erica Wark reports:
H
aving spoken with Xavier Gobille, if you now ask me how I’d best prepare for the future of the automotive marketplace in South Africa, I would advise consumers to embrace Renault, TODAY! Have you heard any news about Renault SA recently? With general auto sales figures being surrounded with so much negativity over the last 18months, and extensive competition in the marketplace, you could be excused for not having taken note… but wouldn’t it be refreshing to hear about a company who is really driving change in South Africa?
Renault SA FEATURE
T h e F u t u re :
enault Let me enlighten you as to some recent achievements at Renault SA; Successfully launched numerous new vehicles: 12 over the last 18 months! Defied negative market trends by doubling their market share: 91% Sales growth for the first half of 2010, some 72% higher than the overall market. Leapt from foreign distributor to local SA manufacturer: Requiring an investment of R1 Billion, evidence of Renault’s long term commitment to the SA marketplace. Recorded substantial growth in dealer network: With a target of 50 dealerships by the end of 2010
Renewed their commitment to service:
Such is their confidence in their products that Renault has released a 5 year 150,000 km warranty. Made their vehicles accessible to all markets: Now including vehicles for entry level AB segment. Local production of entry level Sandero hatchback is now fully operational Achieved level 4 B-BBEE: Renault SA are the first passenger vehicle manufacturer to have attainted this level, and are in leading position throughout the whole country alongside one other manufacturer.
Renault SA FEATURE
July 2010 saw the best month’s figures yet again ! …..And, perhaps unsurprisingly, following this impressive list, they also achieved the following; Awarded Car Company of the Year 2010
This final accolade being an award that Renault SA’s CEO, Xavier Gobille, admitted some surprise at receiving, as it is not usually awarded to such ‘small players’ in the marketplace. However, once you’ve read this article, I’m sure you’ll agree that it seems a fitting testament to the “110%” enthusiasm at Renault SA which has produced such results. Nobody would dispute that 2009 was a challenging year for the South African automotive industry, and many vehicle brands have been lamenting the market slump of 25.9%. However, Gobille has never been more upbeat about the performance of Renault in South Africa. “We have shown real, tangible growth and progress during one of SA’s worst economic
slumps. We became a local, South African manufacturer and renewed our entire model range.” Gobille states. Negative perceptions can only be addressed with facts, and the facts certainly show that Renault is in a prime position to make further, substantial strides in 2010.
Market conditions are not a concern to Renault SA …so what does Gobille’s perceive to be their challenge? To be seen for what Renault SA is, NOW, not a reflection from their past. Gobille is quite frank that his concern is that that SA consumers have not fully acknowledged the impressive strides the brand has made, and that consumer habits are still being coloured by past ‘bad experiences’ or negative connotations associated with the brand. Within the company Gobille has worked with his team to face up to this history and learn from it; with fantastic results.
The new way to shop for cars and bikes
“We have been brave enough to take criticism on the chin, and to address those issues where improvement was needed. There have been no attempts to duck and dive – we have accepted every challenge. But now, the results are speaking for themselves.” However, he is still challenged with transferring this awareness and willingness to re-investigate the brand, to the end consumers in South Africa. Having tracked Renault SA’s recent accolades and product releases I was keen to learn the secret to their success. Gobille, modestly tried to point out that there is no great magic to it; simply much hard work, and the traditional ‘blood sweat and tears’ that any noteworthy achievement requires in business. Of course, from my time with him I now also have an understanding of the smart working attitudes which the Renault SA team has employed in order to channel their enthusiasm into results. Essentially, even though he is expansive in giving all credit to his staff, the company is enjoying it’s current successes because of
Xavier’s thinking – his modus operandum is – “FIX THE PAST - MANAGE THE PRESENT PREPARE FOR THE FUTURE” This ethos reaches far deeper than purely a motto. It requires three different attitudes in fact: FIX THE PAST – avoid typical corporate tendency to look for the guilty, but rather to observe any problems - encouraging the team to look and learn from any mistakes, gain ground from the lessons learned and be prepared to accept and grow. Implicit in this is asking the team to be brave, strong, open minded and willing to take ownership in order to develop a more cohesive strategy and not re-visit historical pitfalls
1 2
MANAGE THE PRESENT – the period 2008-09 saw a storm hit the market. This necessitates a high level of activity across the board and an in depth awareness of the market. Equipping the company with these hard earned talents will mean maximising the effectiveness of Renault SA. www.southafricamag.com
5
Maintaining focus on the company’s Unique Selling Points, it will be possible to navigate carefully through the changing business demands and keep ahead of the pack.
3
PREPARE FOR THE FUTURE - every business needs to plan for the future and this has rarely been so vital as in today’s constantly changing market and economic conditions - both nationally and internationally. The pre-requisite to maintain a firm but flexible focus on both the immediate and longer term future goals is a business imperative at Renault SA Gobille emphasised the importance of managing these three roles simultaneously, when bearing in mind that any ‘reflex’ decision today may adversely affect tomorrow’s success, so the efficacy of his strategic management. Employing this modus operandi has enabled Renault to weather the tempestuous
landscape of the last 18months, and what’s more, achieve notably successes en route.
What’s the next stage for Renault SA? – The importance of efficiency: Gobille emphasises that this is too often confused with ‘cost saving’, the focus at Renault SA is on achieving more value for every single rand and every single action: “Expansion must not be at the expense of quality – by remaining efficient, you preserve quality.” The vision is to set in train strong but sustainable growth, managed by the right team for the future. Growth in itself can be dangerous if not managed and Gobille is mindful that the business must never become complacent, nothing should be taken for granted, and to remain aware that Renault are still in essence a small player in the field for South Africa. For now! Such ambitions, on the back of recent achievements, tie in perfectly with Renault’s new positioning line – Drive The Change – which seems perfectly fitting for the mindset at Renault SA. As Gobille remarks; “It is what the Renault SA staff and dealers have already been doing for the past two years: not making any excuses, instead making things happen, and changing things for the better.” After introducing no less than 12 new models in the past 18 months, few would argue that Renault South Africa offers car buyers one of the most diverse and up-to-date model ranges on the local market. Gobille is confident that Renault SA has something to suit all tastes, budgets and requirements.
Renault SA FEATURE
Which Renault will suit your needs? “Renault SA’s range now extends from entry-level contenders, through subcompact and compact hatchback categories, to the mainstream hatch segment. The best-ever Scénic and Grand Scénic models take care of our presence in the MPV category, while the Koleos gives us superior representation in the all-important compact SUV segment. It is our freshest product range ever, and we pride ourselves to be extremely price competitive in all market segments.” Gobille says. That leaves Renault with a full line-up of new-generation, high-tech products across its entire model spectrum, with commensurate benefits in terms technology, fuel efficiency, and quality. Moreover, despite this comprehensive model offering, Renault SA has a few more
aces up its sleeve: six brand new models, all due for launch in the next four months. Gobille believes that Renault SA now has all the strategies in place to take full advantage of the brand’s potential. Following a 70% increase in turnover last year for the brand as a whole, Renault has invested large amounts of money in the South African business and its two year plan is to triple its business volumes in South Africa and in the words of Gobille “to create a wow effect across the market place”. Certainly, against a backdrop of such positive developments, one can’t help but share his enthusiasm, and his high hopes for Renault in SA. Fancy driving the change yourself? To take a look at the Renault range, find your local dealership, or to book your test drive please visit www.renault.co.za END
South Africa Magazine, Suite 9 and 10, The Royal, Bank Plain, Norwich, Norfolk, UK. NR2 4SF TNT Magazine, 14-15 Child’s Place, Earl’s Court, London, UK. SW5 9RX Enquiries Telephone: 0044 (0)1603 343267 Fax: 0044 (0)1603 283602 emailus@southafricamag.com Subscriptions Call: 00441603 283573 subscriptions@southafricamag.com
www.southafricamag.com
PO Box 472 Isando 1600 South Africa Tel: +27 11 607 7300 Fax: +27 11 607 7380
www.renault.co.za