Abstract
The proactive motivation for Renault to move in the US is to increase the demand. The group has the capacities and competences to produce enough vehicles for both Europe and United States. They also have the skills to produce a technological and quality car concept.
This kind of vehicle is only use in developed countries with a mature market, it can't be sold in emerging markets like China or India at the moment. So they look for a qualified customer to distribute their niche product. Even if the car industry in the US is also in crisis, the opportunity to reach Americans customers can make the difference in sales growth for the company. Supported by a strong production line and financial capacities, the strategy is to use the technological advantages and managerial competences to introduce the car in the US. The final objective is of course to increase profit and market share, but also to support the production by fetching the demand in a new country where the market is mature, and where Renault can easily transport and distribute a new car concept.
Before exporting the vehicle, Renault will have to consider the potential barriers to exportation, as is for instance the taxation applied for foreign products. It also exist non-tariff barriers like quotas or limitation of exported products. The product also has to respect some norms before it can be sold in America. There is also a small risk of "protectionism" from the US government because they are currently trying to save the car industry like we have seen with Chrysler and Ford in Detroit. It can have consequence on the taxation rate or quotas for instance.
