Renault isn’t returning to the U.S. image

The French based automaker Renault has officially announced that it won’t return to the United States and it will rather focus on the Chinese auto market instead.

After the car manufacturer has recently announced the revival of some iconic models, along with a possible revival of the Alpine brand too and with the company moving up market in order to “donate” its current place to the Romanian based automaker Dacia, Renault is once again into the spotlights after the carmaker has announced that it won’t return to the United States and the Chinese market is more important. China is the fastest growing automotive market in the world and compared to 1999, when 600.000 vehicles were bought, the number was 17.3 million last year.

“This data gives us confidence that demand for cars will be strong in the next decades. But are we naively reacting to demographic shifts instead of proactively reshaping our industry, our cities and our planet?”, as the company’s CEO Carlos Ghosn said.

The estimations on future vehicle sales are terrifying and by 2050, there may be around 2.5 billion cars on the planet compared to the current almost 1 billion. You can imagine the traffic jams by then. Renault isn’t the only car manufacturer who is focusing on other markets except the United States and recently the German automaker Audi has announced that the all-new A6 Allroad will not be launched in the U.S.

  • Mark the Shark

    The market for European vehicles in the U.S. is fiercely competitive. The only mainstream manufacturer that has held a notable presence over the decades is Volkswagen, whose cars are revered in Europe as being among the continent's finest. Fiat fell 30,000 units short of their goal of selling 50,000 500's in 2011, Fiat's first full year in the U.S. market since 1982. Smart, introduced in 2008, has consistently failed to reach sales goals year-over-year. Saab, whose largest market was the U.S., is now bankrupt and liquidating after American sales plummeted over the past 10 years.

    It's no wonder Carlos Ghosn wants to focus Renault on China over North America. While a U.S. return could be feasibly facilitated through Nissan's extensive sales and parts network (much like Mini did through BMW and Fiat with Chrysler), it would take billions of dollars in an investment that is too risky to justify.