This adverse economic environment has shown the limits of our business model, which was betting on unprecedented market growth in emerging markets and therefore on record sales.
(CNN)
Aman's key takeaways:
- Renault will cut 14,600 jobs as a part of a strategy to reduce costs by $2.2 billion over the next three years. Under the leadership of Carlos Ghosn, Renault pursued an aggressive (and expensive) expansion strategy with a diverse and complex vehicle line up.
- The company is in an alliance with Mitsubishi and Nissan. As a part of the new strategy, the Renault brand will pull out of China, and each partner will lead in specific regions: Nissan – in North America, Middle East and key markets in Asia, Renault in Europe and South America, and Mitsubishi in southeast Asia and Oceania.
- It is hoped the new brand focus will avoid cannibalization of sales, and develop a leaner structure, allowing the alliance to recover from the current crisis.