Taipei, December 19, 2000
Renault signs an agreement with Yulon Motor,
to give new impetus to its presence in Taiwan
The distribution agreement signed between Patrick Debrot, Vice President of Renault Asia Pacific, and Yen Kai-Tai, Vice Chairman and President of Yulon Motor Co., Ltd, Nissan's business partner in Taiwan for a long period, provides for a significant boost to Renault's commercial presence in Taiwan. It targets a 5% market share in the medium term, with an intermediate goal of 1.2%, to be achieved by the gradual introduction of Scenic, Clio and the new Laguna starting from 2001.
Under the agreement, Yulon Motor will import Renault vehicles from France and will distribute them through current dealers. With the cooperation of current Nissan dealers, Renault's distribution network will be gradually established to have 16 showrooms, which will be kept separate from Nissan in order to maintain the distinction between the two brand identities. Repair work and servicing will be carried out in 16 workshops covering the whole of the country which has a major urban population (70%).
With 412,586 vehicles sold in 1999, Taiwan is the 5th biggest automobile market in Asia. There is also a further potential for importing vehicles into the Taiwanese market when it becomes a member of the WTO (World Trade Organization) in the near future.
150,000 Renaults were sold in Taiwan, starting with the Renault 9 (1983), Renault 11 (1985), Renault 21 (1987), Renault Express (1989), Renault 19 (1990), R9-based Luxmore (1993), Twingo Easy (1994) and more recently the Twingo Automatic (1997).
Patrick Debrot declared: "The signing of the contract with Yulon Motor marks an important step in Renault's redeployment in Taiwan and more generally in the Asia-Pacific region as a whole. It was made possible by the support of Nissan which encouraged the move to link its long-time partner, Yulon, to Renault, in the search for synergies within the Renault-Nissan Alliance."
Established in June 1953 by Mr. Tjing-Ling Yen, Yulon Motor signed a technical cooperation agreement with Nissan in December 1957. Today, Nissan has a 25% equity stake in Yulon Motor which has a share capital of US$ 498.04 million (NT$ 15.666 million), and reported revenues of US$1417.80 million (NT$ 44.597 billion) and a pre-tax profit of US$131.08 million (NT$ 4.123 billion) in 1999.
Yulon Motor employs more than 2600 people and its network comprises 16 dealerships, 133 showrooms, and 118 repair shops. Yulon Motor, which received ISO 14001 certification in February 1999, inaugurated the Yulon Asia Technical Center in November 1998. The R & D facilities contribute largely to further refinements in the products to meet various needs from the local customers. Yulon Motor also covers the whole spectrum of automobile services and is active in vehicle financing, insurance and roadside assistance.
Through its partner Yulon Motor, Nissan holds a strong position in Taiwan. It ranks second in the passenger car market with a share of 22.5%, selling 70,203 vehicles in 1999. The Nissan Cefiro, which is assembled locally at the Yulon Motor plant in San Yi Miao Li, is the top-selling model in the top-of-the-range segment and the second best-seller in Taiwan, with 29,324 units sold in 1999. A new version of this popular model was introduced on the market in October 2000.
Yen kai-Tai stated: "The Renault brand is complementary to Nissan in Taiwan, and in particular the highly innovative Scenic which is unrivalled in the Taiwanese market. It is also an extraordinary opportunity to be able to work with the Alliance, as Nissan is a long-time partner with whom we enjoy an excellent relationship."
Toshiyuki Shiga, Senior Vice President of Nissan said: "The marketing of Renault vehicles will enable the 3 partners to extend the product offering and thus attract new customers who appreciate models with European taste. Renault customers will be able to have the product at quite reasonable prices generated by efficient management in common back-office structures. Maintenance, and servicing for Renault customers will also be available at current Nissan workshops all over the country. This represents a remarkable advantage for Nissan customers and Nissan dealers."
DATA ON TAIWAN
Taiwan automobile market (1999)412,586 PC + LCV (down 10.9% compared to1998)
1999 PCs LCVs CKD 259,392 98,691 87% CBU 50,700 3,803 13% TOTAL 310,092 102,494 100% 75.2% 24.8%
Taiwan: facts and figures21.2 million inhabitants
36,000 km²
600 persons per square km
Urban population: 70%
GDP: US$13,575 per capita
Growth rate 5.48%