How Dacia achieves margins worthy of Audi and BMW

Dacia generates “an operating margin of more than 10% and aims to reach 15% by 2030”, announced Tuesday, November 8 Thierry Piéton, financial director of Renault, during the group’s investor day. This is the first time that the French group has given a numerical indication of the margins of its Romanian brand. And they are stunning! Dacia? Since being reborn under the leadership of Renault, the label has however become synonymous with “low-cost” cars. assumed to be unprofitable. However, Dacia’s margin is at the level of the best German high-end specialist brands such as Audi or BMW. A percentage of a relatively small amount in absolute terms does not, of course, reflect the values ​​of the profits of the Germanic “premium” brands. It prevents The success is remarkable.

But what about the Pitesti brand, ex-flagship of communist Romania, which launched the Logan in 2004 four years after being rescued from some bankruptcy by Renault? In the early 1990s, the French failed to buy Skoda in Czechoslovakia, which was taken over by Volkswagen. Hence the brilliant idea of ​​Louis Schweitzer, then CEO of the tricolor firm, to return to Dacia, despite the terrible reputation of its cars (far from Renault!) in terms of quality. And this, by creating a simple, cheap and easily repairable car for emerging markets. The Dacia model, whose main outlets are in Western Europe, is indeed unique, with five main components.

Simple, lightweight cars, with low industrial costs

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