Implementation of Renault in Slovenia - Cross Culture

The entry of the PECO in the European Union in May 2004 showed with the rest of the world that there is a lot of opportunities for the companies in this zone of the world. However, the process of industrialization and opening towards the foreigner and in particular towards the countries of Western Europe is not so recent, since 1972, Renault concluded an agreement with the factory Revoz of Novo Mesto (60 km in the South-east of Slovenia) in order to be established in the East.

We are indeed leaning on the precise case of Slovenia, because in fact the country made a success of best its economic transition and whose model approaches best from now on that of the countries of Western Europe. Which were the difficulties encountered by the company at the time of this delocalization? Which were the advantages and the disadvantages of the latter, and how it is brought to evolve/move?

We will study these problems in three points: first of all, we will be interested in the context in which Renault was established as Slovenia, then we will see the characteristics of this establishment, and finally we will consider the future prospects for the company in Eastern Europe. First of all, before studying the French establishments as Slovenia, it is necessary to specify the content of the trade which the two countries maintain.

In fact, since 1996, France is the third supplier of Slovenia after Germany and Italy (nearly 1 billion Euros in 2003, is a share of market for our exports of 10, 04%). Among the Eastern European countries, in spite of her small size, Slovenia is the third customer of France behind Poland and Russia, and our fifth trade partner in Central Europe. France, as for it, became the fourth customer of Slovenia. In 1998, exports were about 7, 1 billion Francs whereas the imports of France coming from Slovenia were 5, 2 billion Francs. The trade balance was then surplus 1; 8 billion is a cover rate of 136%. It will be noted that compared to 1997, the sales of France increased by 22%.