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Dacia, a business model ‘difficult to reproduce’. See who says this…

For years, Dacia is not just a car manufacturer, it become a business model. And that says Renault-Nissan CEO Carlos Ghosn himself.

In a Monday interview for Automotive News Europe, asked why have none of Renault’s competitors been able to launch a serious rival to Dacia, French-Lebanese businessman said:

“You should ask the competitors who said they were going to replicate the Dacia business model why they could not do it. What I can say is that Dacia is not just a car range. It’s a whole system, implemented with integrity in order to get the results in product, manufacturing, supply chain, marketing and sales. This may be something that is difficult to reproduce. I’m very happy that no one has been able to reproduce it yet.”

He does not doubt that Dacias and Dacia-badged Renaults still are producing a double-digit operating margin. “Profitability in our industry is where people cannot copy you,” he stressed.

Renault-Nissan CEO Carlos Ghosn is very confident that by 2018 his seven-brand alliance will rank as one of the world’s three largest automakers. He sees the alliance rising from No. 4 now despite big troubles in Russia and finishing about 1.4 million units behind No. 3 General Motors last year. Ghosn is confident because, he says: “A lot of things can happen in three years.”

Renault has increased its operating margin from 0.1 percent in 2012 to 1.3 percent in 2013 to 2.2 percent last year. “We need to be very prudent for a number of reasons, for example, Russia. We have the potential to deliver [an even higher operating margin], but the result will depend more on the external environment than on our performance,” Ghosn said. The outlook for Europe is not very good. In his opinion, the European market is still about 20 percent below its 2007 peak. “I think the current situation is healthy and this slow recovery will continue in the coming years,” one of the richest people in the world, according to Forbes magazine, concluded.

 

 

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