A Century Of Car Chic

Those who watched it on a chilly December morning hundred years ago could have thought of it as a turn of the century circus by just another mad Frenchman. The place was Le Rue Lepic near Paris Montmartre hill and the man was perched on a four-wheel contraption. The stunning thing was that the machine he was mounted on was actually climbing the gradient with a muted growl. His name was Louis Renault.

Fast forward to 1996 Jerez. The thundering roar of a 10-cylinder Renault engine greeted the anxious pitcrew of Williams Renault as Jacques Villeneuve crossed the line third to ensure a world championship title. It was also the culmination of a spectacular era of Renault in the most exotic of motorsports which saw them winning no less than six world championship titles. What a way to complete a century of existence.

 

The road from Montmartre to Jerez was not smooth. That December morning, one of the greatest chapters in the history of automobiles had begun. Renault would stand for technological zeal, but would also be jolted by the shocks that history would have in store. One hundred years after that ground-breaking achievement, Renault stands ready to take on the human and technological challenges of a new century with the same vitality.

From 1898 to 1944, the company knew but one master: its founder and creator, Louis Renault. Louis too had but one passion in life, his factory in Billancourt. His business relied on two key aspects: the financial support of his brothers, who were well-off tradesmen, and his genius for things mechanical. He patented the direct drive system the transmission mechanism that enabled his first vehicle to scale the 13 per cent incline of the Rue Lepic. Manufacturers the world over would adopt the same system. He went on to register other patents, notably the turbo charger.

It was via the world of competition that the marque earned its stripes and its very first customers. The Renault brothers, Louis and Marcel, won race after race. The company started to grow and armed with a vast order for taxis, which would enter the history books in 1914, moved from a craft-oriented operation to full scale industrial manufacture. It introduced the notion of the division of labour (Taylorism) to France, rode out its very first industrial disputes and collected quite a following for its cause. By the eve of the first World War, Louis Renault had become a man of substance and influence, whose company exported a major part of its output.

Renault diversified with new divisions that made everything from trucks to aircraft, from luxury, top-of-the-line cars to small-engined cars and from sports cars to low budget vehicles and even government limousines. At the outbreak of World War II, he kept his plants running and fulfilled orders requested by the German forces. Consequently, Billancourt was a number one target for British bombers in 1942. Renault rebuilt his installations and got back into production. But following liberation, Louis was imprisoned. He died in prison in 1944.

A decree issued by General Charles de Gaulle led to the confiscation of his assets and the nationalisation of the company which became, in 1945, the Regie Nationale des Usines Renault. It is sad that nobody spares a thought for the brilliant engineer turned businessman when they hear the name Renault. Instead flashes of Formula One championship winning cars and sophisticated, brilliantly packaged monospaces fill the mind. That is the story of the new Renault, and its achievements in the last 50 odd years.

The new boss, Pierre Lefaucheux, moved quickly to assert his independence in the face of government authorities seeking to spread the production of trucks. He launched the mass production of a single model, the 4CV, designed during the war: the little car for all. It was a great success and put the company back on track. The Dauphine followed it and confirmed the companys return to good health.

Pierre Lefaucheux was killed in an accident and Pierre Dreyfus took over in 1955. He remained in that position for 20 years, up to 1975. He devoted his energies to demonstrating that a state-owned company could be every bit as competitive and successful as a privately-owned one. He began by calming worker unrest by opening up dialogue with the unions; a series of confidence building measures such as paid holidays for three to four weeks were brought in. Renault became a bastion of unionism and a showcase for industrial relations.

Pierre Dreyfus based his corporate philosophy on two themes: strategic planning and exports. The company was growing fast under his leadership. But Dreyfus had his moment of grand failure as well. He had bet on the American market. Sales of the Dauphine got off to a great start, but the market contracted severely; Renaults sales outlets, set up too hastily to meet initial demand, folded. The result: 1,500 lay-offs at Billancourt and the end of the American adventure.

Following that disaster, Pierre Dreyfus turned his attention to Europe. He developed partnerships (notably with Peugeot and Volvo in the area of engines) and increased the production facilities. Small cars were now given the priority and the Renault 4 and the Renault 5 became instant hits. The Renault 16, an upmarket saloon, was set to overturn accepted values: the hatch and the modular design of the rear seat already signalled the arrival of Les Voitures a Vivre. Renault was set firmly on the path of innovation. The company continued to experience rapid growth right up to the beginning of the eighties.

Pierre Dreyfus passed on the baton, first to Bernard Vernier Palliez from 1975 to 1981, and then to Bernard Hanon. Output topped the two million mark. However, a rapid renewal of the product range, ambitious projects and a strong corporate culture were unable to keep Renault free from industrial unrest. The policy of cooperating with other manufacturers was broadened out. The heavy goods division which now comprised Berliet and Saviem became Renault V.I. The company spread its wings internationally. It reinforced its links with Volvo, acquiring a state in the Swedish manufacturer. It returned to the states via two agreements, one signed with American Motors Corporation for cars and a second with Mack trucks.

Renault now injected its innovative and combative instincts into a new field. Following its success in the Le Mans 24 hour race it turned its attentions to Formula One, the pinnacle of motorsport, bringing to the party a turbocharged engine that would revolutionise the sport. Less than two years later, the first of a long line of successes was achieved.

However storm clouds were gathering which quickly darkened these euphoric years. Rapid expansion and an ambitious product policy led to runaway costs and over-manning, sucking the company down into spiralling losses. Debt reached levels that simply could not be supported. By 1984, the crisis was patently obvious. Production was down by 300,000 units and losses reached a staggering FRF12.5 billion.

Georges Besse was appointed head of the Group and proceeded to apply drastic remedies: 21,000 job cuts over a two-year period, the abandonment of activities not directly related to Renaults core business and most symbolically, the closing down of the Formula One team. But the cure was effected without sacrificing the product renewal programme, viewed as being vital to the future of the company. As a result Renault succeeded in launching two top of the range models: Renault 25 and, most importantly, in collaboration with Matra, the Espace. The latter was the first monospace vehicle on the market, and its concept was later copied by the majority of Renaults competitors. The first signs of recovery were not slow to appear.

On November 17, 1986, the misfortune that dogged Renault bosses caught up with George Besse he was assassinated outside his home in Paris. Raymond H Levy took over and continued the recovery measures. He decided to refocus Renaults attention on its European base, and sold its holding in AMC to Chrysler. He closed the historic Billancourt site and, importantly, initiated a new revolution within Renault, that of Total Quality Management a pre-requisite for its continued existence. The Renault 19 now came to symbolise this struggle for quality. Supported by the Clio, a new extremely successful small car, the 19 gave the company another symbolic victory: the leading imported make in Germany.

In 1987, three years from near disaster, Renault was again profitable, earning FRF3.7 billion. With the exception of a slight upset in 1996, Renault remained solidly in profit.

In the meantime, the global economy entered turbulent times, with a dizzying round of take-overs and mergers. Taking the view that they stood to gain most from their combined strength, Renault and Volvo announced on February 23, 1990 that they would work together more closely. In sight a merger of the two industrial groups. Louis Schweitzer took over from Levy in May 1992 to become Renaults eighth boss. He set about preparing the company for this undertaking, which meant leaving the confines of state ownership. On September 6, 1993 the two partners signed the merger plan. But Swedish shareholders and political difficulties in France caused the abortion of this project. However, a year later, the French government moved to partially open up Renaults share capital in an initial public offering, the first step towards privatisation, which came into effect in July 1996. A long chapter in Renaults history, as offspring of the nation, was at an end.

The dynamic and competitive nature of the company was brought into sharp focus by six successive Formula One championship titles (1992-97), bringing to an end 20 years of intimate involvement with F1, during which Renault had won one out of every three races. On the product front, a completely new range concept saw the light of day: the Megane a common platform for six distinct models. And in 1996, Renault became the first manufacturer to offer a full range of monospace vehicles, with the arrival of the Megane Scenic, positioned between the Espace and the popular Twingo.

Louis Schweitzer focused Renaults strengths to ready itself to take on the challenges of a brand new century. As an illustration of faith in the future, 100 years on from a small workshop in Billancourt that gave birth to the Voiturete of the Rue Lepic, we need look no further than the Technocentre in Guyancourt, which is now fully operational.