Guozhang Chen: Renault Will Transfer More Profit in After-Sales Service

At present, imported Renault medium upper car- new Latitude launches market, and it sells around $ 28.89 – 46.21 thousand in China. As a vehicle that aims international market, particularly for medium upper car researched for Asian market, new Latitude adopts the latest technology of Renault–Nissan. It will bump into stiff competitive medium upper auto market in China. Guozhang Chen, CEO of Renault China, so expressed during interview with reporter of that Renault will put more products into China. As quit dealers, Guozhang Chen does not take it as a problem, he call it “change investors”.

As it known, new Latitude has length of 4887mm, width 1858mm and height 1501mm. It also gears up with 2762mm wheelbase which does not inferior than any C-class cars. New Latitude equips one of the top ten engines in the world V6 engine, has 177 horsepower and torque 233 Nm, plus 6 matching block manual gearbox. Meanwhile, Renault provides a 2.0 LL4 engine model, matches CVT which makes sure shifting gear smoothly and fuel economy.

From Guozhang Chen’s perspective, as a new brand, 70% profit comes from sales, and other 30% comes from after-sales service. The most important question for Renault now is how to transfer more profit to after-sales service.

“After I arrive in China, head office offers a duty for me that I need to increase our sales from 800 to 8000 in 5 years, and sell more than 20,000 within 10 years.”Guozhang Chen said that after ending our renaissance at first phrase, sales of Renault has increased from 800 to more than 20,000, and now “I will build our reputation first.”

“We launch a very big reformation for our dealers since Jan this year. We draw a quarter of our resource to implement the project, helping dealers to digest their inventory, providing training and even paying bank interest for them.”

At present, Renault has more than 80 dealers in China. It forecasts the number will extend to 185 before 2015. Different from other brands which expanding 4s shop, Guozhang Chen prefers to build satellite shops based on existed 4s shop. He believes it has two advantages for the strategy, first consumer can share Renault service, and secondly it can reduce cost for dealers obviously. “A satellite shop only costs $ 80- 100 thousand. Compared with more than $ 1.5 million investment for a single 4s shop, the model has its advantages for sure.”