This time it's different: Renault boss

Renault Australia is re-inventing itself... Again...

Irrelevant in terms of outright sales, the local arm of what is one of the world's largest and most successful car companies is back to talking up its future. Banking heavily on the success of its just-launched Mégane and Fluence small car models, it's looking to address slipping sales and re-invigorate its dealer network. In a back to basics rebuild from the product range up, it's also looking at redefining its brand values Down Under.

The man charged with this rebirth is Justin Hocevar. The new Managing Director of Renault Australia, Hocevar's background is with BMW Group. After stints in both its motorcycle and MINI arms, he comes to Renault Australia with a keen insight of what needs to be done to facilitate change.

Not surprisingly given the climate, Renault Australia has adopted Renault's global slogan "Drive the Change".

"Renault in Australia has adopted 'Drive the Change' as our positioning statement and mission both internally and externally and it will shape the way we do business, specifically in the immediate future as we introduce a wave of all-new vehicles to this market," Hocevar told the Aussie motoring media at last week's launch of the new Megane and Fluence ranges in Melbourne.

"Renault is making a significant investment in Australia that will deliver the Renault brand long term status as a key player in the local automotive market. This is in addition to the refreshed and highly competitive product portfolio," his manifesto read.

It's not the first time that we've heard the French brand talking up its plans Down Under. What then is different this time around?

"There's a lot different," Hocevar told the Carsales Network.

"We've got a completely new organisation, a new product portfolio, we've got the support from head office and a lot of fresh people [supporting Renault Australia] within the [Asia Pacific] region. I think both [senior execs] Emmanuel [Levacher, Commercial Director Asia-Africa] and Christophe [Di-Perna, Territory Director Asia-Pacific] are still pretty fresh in their roles within the region. [But] There's certainly a big push to develop this region and we're going to put a lot more structure behind the business," he stated.

Di-Perna backs up his man in Oz.

"As Justin explained, it's like a cocktail of one third organisation, one third product, one third back-up support. With the product we are promoting today [new Mégane] and value proposition and positioning of these products, we see greater opportunity.

"The market is still robust, this [Australia] is still the number one market for imported cars in the world, so yes, we put Australia right on the map. I think this time we've got the three ingredients, we've got the products, the people and the vision," Di-Perna opined.

According to Hocevar, Renault Australia is expanding its executive team substantially. A new marketing General Manager will be charged with brand responsibilities but engaging the brand's dealers is paramount.

"We're taking a very serious approach to dealer development. One of the key things is that we're shifting to become a retail oriented, a customer focussed company. You'll probably see by the way we've priced and equipped the product, it's all very much about giving substance to the customer. There's this holistic approach that will be taken to the business to develop it, and that's customer focus."

The new Renault boss says the brand will grow its dealer numbers but not substantially. Whether that number will include all of the existing operators is not clear.

"We can't afford to have partners who are not prepared to follow this new leadership strategy.

"We had a dealer conference; we got them to drive all the product; we presented to them; we provided a very high level of transparency of our business model going forward and we laid all our cards on the table and they really appreciated that... We're going to ask them [our dealers] to step up in every aspect of the business. But we've got to walk before we can run. Any manufacturer knows that with focus comes improved levels of business service and the Renault dealer network could certainly do with higher degrees of dedicated focus," Hocevar hedged.

Renault's relaunch includes aggressive pricing and equipment upgrades on key models -- such as the abovementioned new Mégane. Hocevar says the equipment and pricing policy is aimed at the long term... The $25,990 driveaway pricing for Mégane hatch and Fluence sedan is not an introductory offer he says.

"This is our positioning moving forward. We're pleased we've got a very viable business case that's based on these products and the substance we've put in the products.

"Yes, we'll go through an investment phase, but that's really about letting people know what the Renault brand is all about. I think many Australians don't really understand at the moment. Anyone who's been to Europe perhaps has been able to get a greater sense for what the brand's about."

But the new boss says his volume aspirations for the brand are "realistic".

Compared to 2009 Renault is 30 per cent down on registrations (Sept year to date) in an overall market that's up around 15 per cent. Sources say the brand is retailing more new cars than the numbers would suggest -- a hangover of cars preregistered during the GFC.

Hocevar's plans to shift "mid-3000s" next year therefore should be achievable. Unlike some of his predecessors he's also realistic in the medium term. He'd like to see Renault Australia selling 5000-plus new vehicles by 2015.

To date Renault Australia has consistently suffered from the late arrival of product. A case in point is the Mégane launched last week -- that was first shown in Paris in late 2008. Hocevar diplomatically acknowledges that the local team is doing all it can to ensure any pipeline is minimised.

"We're doing our utmost to make sure our product planning at this end is bulletproof... To make sure that whatever our product requests are and our homologation processes and so on, [that they] are robust enough that it won't cause any delays from our side. [But] from what I have seen in the Renault Nissan alliance... speed to market has improved significantly."

But in addition to timeliness, key to the brand's growth will be the ability to increase its range in key segments -- including light cars. In recent times Clio has only been available to Australian buyers in its high-performance, but expensive Renault Sport guise. So will the new Renault Australia be able to join the dots on the Clio business case where it has failed in the past?

Di-Perna says the door is not closed. He suggests that the business case that once saw Clio priced out of contention Down Under is now changing.

"[That business case was] When the Aussie dollar was 1.8 [dollars to the Euro)] and before the GFC. It was before other things.

"As you know our industry is in [a period of] big change. Industry and strategy and so on are changing. And consequently I believe that the business case is changing -- and it's something that we are working on...

"And the world is changing. Renault is changing. Australia is changing. We don't close the door to any opportunities right now."

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