Renault...Focus!

I just read that Renault launched the Scala yesterday. Logical move, but not in India. Here is why. Renault (Renault-Nissan) launched the Micra, and it did not help the Nissan badge; sales were not sustainable. Couple of years later, Renault broke-off the Renault-Mahindra tie-up and went full-steam with popularizing the Renault brand and launched the Duster (a very intelligent move - something that hit the sweet spot) and (to my horror) the Pulse!

The Pulse is a badge-engineered Micra. I felt repulsed! Does Renault not respect the intelligence of the Indian consumer (to not read through this brand engineering gimmick)!?

The Pulse did no better than the Micra and now Renault launches the three-box version of the Pulse / Micra...the Scala!!!

Why!?

Everyone has been crying horse, "Renault-Nissan get your after-sales network up and running; your cars are good and we will buy them...provided we have the safety net of the knowledge that there is a service network to support the products."

Mr. Ghosn, the fact that a strong aftersales network is the magic to an automotive brand's success is no rocket science...

Renault-Nissan teams up with Daimler

Renault-Nissan enters into a strategic partnership with Daimler. All the three automakers will have around 3% stake in one another through equity exchange. The near-future aim of this alliance is to collaborate on the next generation Smart Fortwo and the Renault Twingo, including electric versions of the cars.

The overall objective of this alliance is to share and develop engines and powertrains for future passenger cars and light commercial vehicles for all three automakers.

In a nutshell, Daimler will get to use Renault-Nissan's latest generation small 3/4-cylinder small petrol and diesel engines for new Smart vehicles and also use these engines to introduce entry-level vehicles in the future. Daimler also gets to use Renault-Nissan diesel powertrains for it van, the Vito. Moreover, Mercedes-Benz Vans will get to include Renault-Nissan entry level models in its Light Commercial Vehicle portfolio from 2012 onwards.

In return, Daimler commits to lend its 4/6-cylinder petrol and diesel engines to Nissan's luxury car brand, Infiniti.

The deal clearly states that the brand and product identities of the three car-makers will remain intact.

There is also talks about Daimler and Renault-Nissan using one another's plants in the US to manufacture vehicles.

This looks like an interesting alliance provided Daimler keeps its end of the promise and not provide dated engines and powertain to Nissan like it did to Chrysler.

Whichever way the alliance swings, but one thing is for sure, the new age of automotive industry has arrived and many more consolidations are in the cards.