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... 2 Introduction
Renault is a volume based car manufacturer in a cyclic market, operating predominantly in Western Europe. ... 3 Set the scene
In 1999 there was expansion in virtually all the European car markets. ... Sales have continued to increase above the market rate with the 106, 306 and Saxo models and with the growing demand for Peugeot 206, Berlingo and the Partner and the Citroen Xsara
· Renault sales have grown above the market in recent years with the largest jump being in 1998 with the introduction of the Clio II (best selling small car in Europe). ... 2 Operating Profit
· After recovering from decline in the mid 90s and overcoming the effects of the French Government small car initiative scheme, PSA are showing a slowing down in growth and Renault show a fall in Operating Profit in 1999. ... Renault has always been in the small to medium car industry and more than 50% of car sales are in the small car (lower margin) market - Kangoo, Clio. ... Nissan are operating in a declining market - the collaboration will have the effect of smoothing profits as part of the strategy is to compensate for the cyclic nature of the car markets internationally. ...
· A high level of debt/gearing makes a company vulnerable in a cyclic industry due to the burden of high interest.
Approximate Word count = 1927
Approximate Pages = 7.7
(250 words per page double spaced)
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