Renault Twingo, page #29

Auto blog

Renault appoints Dacia Logan creator to head its Nano-rival program in India

After watching the Tata Nano post sales numbers smaller than its engine displacement, Renault gave up on its much publicized intention to build a truly inexpensive car to rival it. Then, a month ago, reports emerged that Renault was resuming work on a couple of low-priced cars for emerging markets, but this time it would work with its in-house partner, Nissan. That plan envisions an offering for €3,000 ($3,888 US) and another for €5,000 ($6,400 US), both of which would be more spendy than the Nano but might avoid the charge of being cheap - and nasty - and instead be considered affordable.
A report in Reuters talks to the man in charge, Gerard Detourbet, who has been in Chennai, India since at least August working on the program. Detourbet led the Dacia Logan project and is considered "Renault's low-cost car specialist" and "the father of entry-car programs." This one is reportedly codenamed A-Entry and will create a "'sub-entry' architecture" that will provide roominess beyond the vehicle's price and class, and use an engine with a displacement of 800 cubic centimeters.
It isn't aimed at the Nano, though - it means to take on the products that make up 45-50 percent of India's car market, like the Maruti Suzuki Alto and Hyundai Eon. According to Reuters, out of the 2.6-million-strong Indian car market the Maruti Suzuki line-up alone nabs one million registrations annually. The Alto 800 begins at 244,000 rupees ($4,440 US), the Eon at 300,000 rupees ($5,559 US), the Chevrolet Spark at about 316,000 ($5,750 US); if Renault can nail its price targets it will just about bracket those three and be right in the game.

EU formally questions French government assistance of Peugeot's finance arm

Recently, the finance arm of PSA/Peugeot-Citroën was in such debt trouble that it was pricing itself out of the car loan market. The rates it was paying to service its debt, which was rated one step above junk, were so high that it was forced to charge car-buying customers higher rates than they could find elsewhere. This was adding to Peugeot's already impressive woes by sending revenue out the door to competitors.
Two months ago a deal was worked out with the French government whereby the state would provide 7 billion euro ($9 billion USD) in bonds to guarantee the finance arm's loans. The French government could nominate someone to join the Peugeot board, Peugeot would guarantee more French jobs, and on top of that deal, other banks would provide non-guaranteed loans. The government would take no equity stake in the car company.
Although not yet finalized, the arrangement is meant to create some breathing room for Peugeot Finance to lower its interest rates for customers, and a government-nominated board member, Louis Gallois, was recently named to Peugeot's supervisory board. The arrangement was also openly questioned by at least three competitors: Ford, Renault - which is 15-percent owned by the French government after it received state aid - and the German state of Lower Saxony, itself a 15-percent shareholder in Volkswagen.

End of the road for French flagship sedans as Citro"en C6 production winding down

Even if their avant-garde styling has historically meant that they would never enjoy the sales success of their more staid German counterparts, it was always somehow comforting to know that the French were building large sedans. With a history of nontraditional looks and peerless ride quality (a legacy built on the hydropneumatic suspension of the original Citroën DS), big French cars have always been an acquired taste.
And now it appears buyers with that specific palette won't have a clear place to go, at least for a while. According to Automotive News, production of the Citroën C6 shown above (click to enlarge) is scheduled to cease this month, leaving French buyers (and Francophiles) without a true-bleu option. As the article points out, Renault will still offer its Latitude - effectively a badge-engineered rework of the Korean-built Samsung SM5 - but patriotic consumers have apparently been staying away because it isn't French enough (Renault has sold under 3,800 examples this year).
Renault may yet provide an answer for its displaced countrymen in the form of a new Initiale Paris-branded flagship offering that would be developed on Mercedes-Benz E-Class britches, but it has not yet decided whether it will move forward with the car. The alternative, to follow Citroën and Peugeot in leaving the segment, is probably looking quite appealing now, especially with Europe's continued economic malaise.

PSA and Renault both hit by autoworker strikes

Peugeot-Citroën (PSA) and Renault were both the targets of autoworker strikes on Thursday, the result of ongoing tensions between labor and management in the wake of planned facility closings in 2014.
3,000 French jobs stand to be lost in less than two years when the PSA's Aulnay plant executes a planned closure of a production line. The line in question currently builds Citroën's C3 subcompact model.
Negotiations are reportedly still underway, with PSA pledging to offer jobs elsewhere to about half of the Aulnay workers that stand to be laid off.

Infiniti signs four-year deal to become title sponsor of Red Bull Racing

The chief of Infiniti's Formula One motorsport involvement, Andreas Sigl, said just last week that the brand was "going longer and deeper" into its collaboration with Red Bull, and the proof has already come: the Japanese luxury brand has signed a four-year deal to become the title sponsor of Red Bull Racing. From next year the team will be Infiniti Red Bull Racing.
The move cements Infiniti's intention to make the most of the already-ongoing technical collaboration it has had with Red Bull Racing for two years - this year Milton Keynes team has been testing Infiniti's Scratch Heal paint for aero properties and during the young driver test it used KERS batteries that were wholly developed by Infiniti's parent company, Nissan.
Earning a tip of the hat for not giving into cheap-trick branding, the engines will continue to be branded as Renault. Renault/Nissan CEO does not "want any confusion within the Alliance as to who does what."

Renault planning a Tata Nano rival. Again.

Four years ago, Renault confirmed that it would partner with India's Bajaj Auto to develop a rival to the Tata Nano. At the time, as everyone waited for the Tata Nano to arrive, you could have used a Richter scale to measure the tremors the executive suites of any automaker with an interest in the low end of emerging markets. Then the Nano, still the cheapest car in the world, didn't sell so well - at the end of last year its sales were just six percent of its most conservative projections - and everyone seemed content to let Tata spend the money to figure out if there really was a market for the cheapest car in the world.
Renault believes there is, kind of. Automotive News Europe reports that it will partner with Nissan to build two low-priced cars for emerging markets, one for €3,000 ($3,888 U.S.) and another for €5,000 ($6,400 U.S.). The price of the least expensive offering is nearly $1,400 more than a Nano, which costs $2,500, and that can't be considered a small sum in comparison. But one of the hindsight knocks on the Nano has been that even in emerging markets buyers don't want a car whose biggest lure is that it is cheap; they'd rather give their aspirations a bit more of a workout.
Renault's offerings are scheduled to hit the non-Western market in late 2014, which is coincidentally the same year that will see the return of the budget-minded and emerging-market-specific Datsun nameplate. They'll be built in Renault facilities in Chennai, India, with no mention made of Bajaj this time around.

Thought Renault's Twizy couldn't get more French? Here's one covered in macarons

While we were in Las Vegas covering the 2012 SEMA Show, sweeter teeth had converged upon France's capital city for the annual Salon du Chocolat, otherwise known as the Paris Chocolate Show. Renault brought a little automotive flair to the this year's show by teaming with French pastry chef Pierre Hermé to create a Renault Twizy covered with macarons.
In a two-day process, 1,700 of the Oreo-like pastries-weighing around 50 pounds in total-were individually glued onto the high-calorie show car's bodywork and wheel covers.
Scroll down to watch how this tasty Twizy was created.

Renault's Gordini to focus on track-oriented models

Following Renault's tie-up with Caterham to produce Alpine sports cars, Renault's sub-branding bifurcation is taking more sensible shape. When the French brand announced the revival of the Gordini brand in 2010, the plan was that Gordini cars would "slot in above the current Renaultsport offerings." That plan was quickly shot dead, Gordini models starting with a Clio and Twingo that featured extra performance bits, moving onto the base Twingo as a paint-job trim level, then seemingly slapped on any car with blue paint and white stripes like the Clio Renaultsport Gordini 200.
Company CEO Carlos Tavares told Autocar that Gordini is going back to its roots - again, but for real this time. The name will be applied to an "ultimate track-focused car" that is a road-going "derivative of a special track car." It will be above the Renaultsport designation, and now we'll wait to see how it fits in with Renault's Cup cars - whether Gordini will be the hardest version of a fully featured road car, or if it will intrude into Cup territory, those Cup cars sacrificing content like air conditioning and convenience gadgets in order to provide even more performance.

Caterham to expand beyond sports cars; city cars, CUVs possible

Caterham may be looking to expand its product scope beyond its current offerings. After the company announced an alliance with Renault yesterday, Caterham Chairman Tony Fernandes was quoted as saying the partnership is "the start of a line of products from Caterham." Fernandes went on to say the purist sports car manufacturer could move to begin producing crossovers and city cars in the same way that Porsche has evolved its position in the market. Don't start crying at the thought of a five-door Caterham just yet, though. The would-be product explosion may also include the addition of a new supercar.
CEO Graham Macdonald has said he envisions the brand as being capped with a halo project, complete with a carbon fiber chassis and KERS system on board. Of course, none of this translates directly into a new model on the road. As of right now, Renault and Caterham have only agreed to produce one vehicle under their budding partnership.

Renault teams with Caterham to revive historic Alpine brand

Back in May, Renault rolled out the bright blue Alpine A110-50 concept, suggesting an exciting revival for the historic Alpine name. Today, the automaker has announced a partnership with UK-based Caterham to build high-end sports cars at Renault's Alpine plant in Dieppe, Normandy, in France. Caterham will own a 50-percent stake in the partnership to be called the Societe des Automobiles Alpine Caterham (SAAC).
"This innovative partnership with Caterham embodies a longstanding ambition: the creation of a sports car with the Alpine DNA," said Renault Chairman and CEO Carlos Ghosn in a press release. It carries both opportunities for the Dieppe plant and the development of its historic know-how."