Societe Renault Frères was founded in 1899 by Louis Renault with the help of his two brothers Marcel and Fernand along with a couple of friends. Louis had already built a couple of specials and his brothers had been working for their fathers textile business before creating the car company. The first car the Voiturette 1CV was sold to a family friend and this started what was to become one of the worlds largest car companies.
By 1906, Louis had taken full control of the company – Marcel had been killed three years earlier in a motor racing accident and Fernand had resigned due to ill health. It is unknown what involvement the other founders had – they could have just been the initial financiers.
Renault diversified quite quickly building trucks, buses and taxis and then helping the war effort by manufacturing ammunition, planes and tanks for the Allies. The end of the First World War saw Renault in a commanding position in France’s manufacturing industry.
After the war, Renault branched out further into agricultural and industrial equipment and expanded the car range to cover most segments ranging from very small to very large models. They also set up an operation in the UK to modify cars for overseas export. The declining British Empire was a strong market for Renault, so the London based subsidiary would modify cars to suit the conditions of overseas markets.
Renault was always at the forefront of technology and during the 30s built cars made from many aluminium components to keep the strength with a reduced weight. Models such as the Grand Renault or the Stella range that were up market luxury models were very successful for them.
However, it was the late 30s and early 40s that changed Renault forever. France had been over run by the Nazi’s and the factories were forced to build equipment for the German war effort. No cars were produced during this time and Louis Renault was arrested by the French Government for allegedly helping the enemy. This was a bit rough, as he probably had no choice in the matter! Whilst in prison, he died and the autopsy showed that he might have been murdered – no reasons were given as to the motive.
So after the Second World War, the French Government grabbed the factories and created Regie Nationale des Usines Renault creating cars for the common man. A sound strategy as money was tight after the war and people needed a cheap reliable way of getting around. The 4CV was a direct competitor to many smaller cars such as the VW Beetle, Citroen 2CV and other British made cars from Morris and Austin.
The 4CV was replaced by the Dauphine and the company expanding into overseas territories. The next model out of the French factories followed the trend started by the Mini – front engined/front drive mechanics. This was the Renault 4, a flimsy but cheap workhorse that along with Citroen provided transportation for thousands of people.
I learnt to drive in a 4. It had what appeared to be an umbrella handle sticking out of the dash – this was the gear lever and it came with a “tilt” light. Officially this was an oil pressure warning light but it would come on when you went around a corner too hard and the sloppy suspension meant that you were close to rolling it! Ours had a canvas roof too, which made it even more flimsy!
The 4 was joined by the 5 in 1972, another hugely successful car that the current Clio emulates. The 5 took Renault into rallying with great success by building the 5 Turbo – a mid engined rear drive car whereas the original was front engined and front drive.
Renault model names were simple: 4, 5, 6, 11, 12, 15 & 16. These were joined by the 17, 20, 25 & 30. Renault also developed the Fuego, a competitor for the Ford Capri and the 5 was replaced their most successful model – the Clio. The Twingo, Laguna and Megane saloons followed filling the range with modern designs that people wanted to buy.
Renault also developed the Espace, the first European people mover – a challenge to the US based Dodge, Plymouth and Chrysler models. This was a hugely successful model for Renault and was built by Matra who had initially developed the vehicle with Chrysler UK. When Chrysler Europe was sold to Peugeot Citroen they rejected the design. Renault took it even though the early models had old Chrysler Simca components! It took 4 years to replace the Chrysler parts with Renault replacements.
Renault had been keen to exploit the US market. They started with by taking Rambler kits from AMC and building them in Europe to give them a luxury model. AMC also owned the Jeep brand. AMC were struggling and the Jeep marque was keeping them afloat with their classic 4WD models. In the 70s, Jeep had redesigned the Cherokee as a smaller SUV to the previous model and needed a cash injection to get it to market, so Renault bought nearly 50% of AMC to help them.
AMC built some Renault models in the US using Renault components but AMC based styling. These known as the Renault Alliance and were based on the R9 and R11 models. They were built in the Rambler factory until 1987 when Renault sold its stake as part of the acquisition of AMC by Chrysler who renamed it Eagle.
In 1996, the Government finally privatised Renault and this has been a huge success as the company has been able to make it’s own decisions to continue it’s global expansion.
In 1999 Renault bought the Romanian car company, Dacia. Dacia had been founded in the 60s to build Renaults under licence and all of it’s early models were Renaults with a local build quality and badge. Now a fully owned entity of the Renault Group, it is the most profitable piece and its Logan models are now built in several factories around the world. When you look at the Renault Quarterly figures, Dacia is very prominent as the division that is making the real money.
Also in 1999, Renault formed an alliance with Nissan to share technology and components. The alliance saw Renault take a 44% stake in Nissan, with Nissan taking a 15% stake in Renault. This agreement allows the companies to co-develop models and engines that will be manufactured at their joint plants across the globe. The partnership gives them a good share of the global market.
In 2000, Renault bought SMI, the auto division of the Samsung chaebol. It was subsequently renamed Renault Samsung Motors. SMI was originally set up in 1994 to build Nissans under licence in South Korea. Samsung still hold 20% of the company.
In 2008, Renault took a 50% stake in AvtoVAZ, the manufacturers of the Lada brand (formerly a FIAT under licence). The deal means that the Dacia Logan will be built in Russia under the VAZ banner. Late in 2009 Renault increased their stake by providing €240M to upgrade the factory and soak up 30% of the capacity by building Renault and Nissan models.
Renault was founded on the principle that exposure to some form of motor sports was good PR and a great proving ground. Since the 50s it was with the Alpine company that they purchased in 1970 and is now called Renault Sport. Alpine were like Abarth and AMG, a specialist tuning house that ultimately got acquired by the manufacturer they were working with. Alpine build competition cars and some road cars under the Alpine Renault and Renault Alpine brands. All of the modern high performance models like the Clio Williams, R5 Gordini and Spyder models are built at their Dieppe facility on North France. Renault’s Le Mans winning cars were also Alpine built.
As well as their success in sports car racing, Renault has had two F1 teams and a successful F1 engine program. In the mid 70s Alpine (as Renault Sport) developed the first F1 turbo car. It took 3 years to win a race, fittingly the French GP. This first incarnation lasted until 1985 when they became just an engine supplier from the 1989 season.
Their engines powered Williams and Benetton to both drivers and constructors championships. After Renault’s withdrawal in 1997, they continued to supply parts to 3rd parties who supplied the F1 teams. So Renault sourced motors were known as Supertec, Mecachrome and Playlife. Renault engined teams won the F1 Constructors championship from 1992 – 97.
Renault then returned to F1 by buying the Benetton team in 2000 and renamed it Renault in 2002. This time they managed to win the Constructors Title twice in 2005 and 06 with Fernando Alonso winning the Drivers Titles the same years. For the 2010 season, Renault has sold a large stake in the team to a Luxembourg based company - Genii Capital.
Renault has also supplied the Red Bull team with engines, whilst their sister team Toro Rosso used Ferrari engines. This arrangement will continue for the 2010 season.
Last updated: 02 Jan 2010