Dacia-Renault Case Study

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1.1.1. Renault

Figure 3.3. Dacia-Renault timeline

Dacia was established with Renault as a Joint Venture in 1966. It is situated near Pitesti, in a small town called Mioveni. The first car came out under the licence of Renault in 1968. Ten years later Renault withdrew from the JV and Dacia continued producing without any western partners. For almost 30 years, Dacia was producing the famous model Dacia 1300 under the so-called licence of R12 and after 1978 the vehicles sill resembled to this model. This vehicle had almost no technical and technological advancements; it was a mass product for a mass market. Until 1981, it was the only car produced by the Romanian producer. The first and at the same time the last model designed only by Dacia was the Nova in 1995. (Dacia Club, 2010) (Renault, 2015)
In the 90s, Dacia was again searching for a foreign partner, but without success. Then in 1999, the negotiations with Renault resulted in an agreement, after the company has been privatised in 1998. Renault took over Dacia. The French management was primarily attracted by the favourable labour costs. (Egresi, 2007) By the year 2001, it made already an impact on the producing lines; as a result, the new Super Nova had new engine, gearbox and interior design. Romanian car lovers did not have to wait too much when two years later the Solenza
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In that way, Renault could get access to the growing CEE market. They took over Dacia in 1999 by acquiring 51% of the shares, and in 2004, they already had a 99.3% share of the Romanian firm. The investment and upgrading process could be divided in three main stages. In the first step, taking over the Dacia plant, Renault’s main task was to modernise the product and design process in the subsidiary in Pitesti. Not only did they create technological improvements, but they also invested in training the local

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