Renault Nissan Dethrones Volkswagen 10.61 Million Units to 10.53 Million Units
The latest trend in car building is to scale back and cut cost. Saving every penny they can is necessitated by investments auto manufacturers are making in the latest technologies. Can you scale-back and still increase sales? If you are Renault-Nissan you can.
In 2011 Toyota became the top-selling automotive brand in the world. In 2016 Toyota’s dominance was usurped by Volkswagen. After only a year on top, the Peoples’ Car has been dethroned by Renault-Nissan.
It should be noted that while the company is called Renault-Nissan, Mitsubishi is also part of the Franco-Japanese alliance. Mitsubishi sales accounted for 1.3 million of the 10.61 million units Renault-Nissan sold last year.
Nissan sold 5.82 million cars while Renault kicked in 3.76 million sales. Team VW whose line-up includes Porsche, Skoda, Audi, and Seat finished the year with 10.53 million vehicles sold.
According to CEO Carlos Ghosn Renault-Nissan’s objective is to cut costs by $12 billion dollars. These cuts will occur in the areas of production and research and development. Greater interchangeability of parts is also part of the strategy.
Other car companies like GM don’t hold with the scaling-back strategy. General Motors decided to get rid of dead weight like its Opel division to focus more capital on divisions that are succeeding.
GM is counting on trucks, SUVs, and Cadillac to keep the company profitable. This strategy is not without merit. In the first nine months of last year GM’s profit margin was 1.8% above the profit margin posted by Nissan.