By Kim Da-ye
Renault Samsung Motors is expanding its sales network, introducing new and upgraded models as well as bringing in an electric car and a smaller vehicle to offer a wider selection to consumers, according to the automaker’s new sales executive.
Renault Samsung plans to increase its domestic sales outlets from 195 to 203 branches this year, with the all-new SM7 sedan about to hit the market, Frederic Artaud, head of the sales and marketing division, said in a written interview.
“Renault Samsung is certain that the SM7 vehicle will be successful,” Artaud said, pointing out its prototype was well received at the 2011 Seoul Motor Show.
The second half of 2011 is expected to generate fresh momentum for Renault Samsung’s domestic business as its sports utility vehicle model QM5 with a facelift goes on sale and the all-new SM7 will come out in the third quarter.
Its current lineup of the SM3, the SM5, the SM7 and the QM5 is expected to expand in the coming years as the automaker is starting to market an electric vehicle next year and launch a small-size car afterward.
“Our four models belong to the segments that occupy 70 percent of the Korean market. We plan to launch small vehicles in three to four years. It is already under development, and will be produced here,” Artaud said.
On the possibility of importing the parent company’s vehicles, the sales chief said the firm is considering various options but nothing has been decided.
He was more enthusiastic about launching electric vehicles here, saying that the current goal is to introduce an electric vehicle in 2012.
“Going electric is a major strategy of the Renault-Nissan alliance… Electric vehicles are competitive in the market, and it will help boost the brand image of Renault Samsung. We plan to mass produce and sell them next year, not this year.”
For the recovery of the firm’s earnings, Artaud stressed the importance of the sales network, which he called “the biggest asset of Renault Samsung.”
After becoming the first French sales and marketing director of the automaker, Artaud has frequently visited sales outlets to encourage employees. Artaud joined Renault Samsung in May 2008 as the marketing director after spending more than 20 years at the marketing department of parent company Renault.
He proudly added that the automaker’s salespeople are dedicated and well-educated and that the firm launched the Renault Samsung Academy earlier this year to foster professional sales staff.
Furthermore, the sales head showed an iron will on continuing the company’s “one-price policy” of providing vehicles at universally fixed prices.
“I believe it is a policy beneficial to both the company and the customers. We made it from the customers’ point of view to improve their satisfaction. They don’t need to inconveniently visit sales branches several times to get a discount.”
Artaud also hinted that the company would keep Samsung in its name as he believes the brand helps sales to Korean customers.
Renault Samsung sold 19,624 vehicles in May, up 22.7 percent from April but down 12.6 percent from a year ago.
Exports rose 29.7 percent to 8,951 from a year ago, but domestic sales dropped more than 40 percent.
“Between 2009 and 2010, Renault Samsung showed a very robust performance. The sales dropped temporarily because of the Japanese earthquake in March, but I believe its impacts are fading,” Artaud said.
“We are, for sure, recovering. The sales are going up.”