With several decades in the automotive sector in tow, Renault’s Vice President of Sales and Operations for Latin America, Jorge Portugal (57), returned to his native Buenos Aires for a few days. Industrial Engineer from ITBA, his professional career passed through Volkswagen, Isuzu, Audi, Esso and Techint; in Argentina, Brazil and China, prior to his current challenge in the region and which coincides with the global reconfiguration of the group. In particular, the focus is on the repositioning of the brand worldwide and the objective is to place the customer at “the center of the business”.
NEWS: What does this purpose of a new relationship with the client mean?
Jorge Portugal: Within the strategy of Renolution which was launched last year, an important aspect is to take the customer as the center of our business. In short, it means a network of dealerships with a new identity, a communication that emphasizes some aspects through an advertising campaign (another tone, more “human” and with greater innovation in execution) but above all that the customer feels well throughout your contact experience with the Renault brand. That is the main focus, in addition to seeking to improve profitability, of course.
NEWS What is sought with this policy?
Portugal: Renault defined a purpose, which is very important because it speaks of innovation, mobility and closeness to people. And for that, a different concept of corporate social responsibility was created, based on three pillars: sustainability, environment and inclusion. We want to go from being car-makers to care-makers (in Spanish: from car manufacturers to care manufacturers).
NEWS: What are the indicators that you monitor to make this initiative effective?
Portugal: A lot of safety: both employees and customers or anyone who has a link with Renault throughout its value chain. Therefore, the safety of vehicles is very relevant: for example, in Europe we are already putting speed limiters in their vehicles from the factory. The other is to aspire to have a zero carbon footprint by 2030 in France, 2040 in the rest of Europe and 2050 worldwide. This implies going towards a line of products with a greater presence of electric and hybrid technologies.
NEWS: What does it mean in terms of customer experience what works the most in this regard in the world and how does it translate in Argentina?
Portugal: Basically it is listening more to customers. For example, we are generating a quality measurement, the e-reputation, through the Google system, of the “stars” by which each client places their assessment of their experience. And we have to have a response rate of at least 95% of the comments, good or bad. We are interested in each client having an adequate response to their expectations. It is an opportunity to correct if there was an error at any stage of the process. But the key will also be in having the information on time, without the delay in becoming aware that makes any correction useless. The test system is online, so it gives us instant information and also allows us to compare ourselves with other industries, in a benchmark crossed. We have the pilot tests and in the second semester we launch it.
We are exploring the results that give us good values (4.6 stars out of 5) and the idea is to challenge ourselves, based on where we stand.
NEWS: With respect to other clients, what does the Argentine value more?
Portugal: Decidedly, the response time and the delivery time, something key when one buys a car. Currently, this variable is governed more by supply than by demand and that is why transparency translated into the buyer knowing when the vehicle will be available is essential.
NEWS: And transparency, what does it imply?
Portugal: The delivery time is more regulated by the production capacity. An objective that we set ourselves is that a high percentage of the vehicles can be produced locally, which allows us to have more control over the delivery times to the dealer and the final customer. Currently the local composition is 50% and 90% of what is sold is manufactured here.
NEWS: And there are logistical problems, too.
Portugal: There are multiple factors: the chip crisis, logistical problems (less availability on ships and routes with much more expensive prices), with which we focus so as not to delay production. Today we are fulfilling what was previously planned (45,000 units, but Renault may be selling much more). That is why we are working to increase this volume.
NEWS: There were also problems with the compensations and the trap…
Portugal: We had no problems with funds to pay for imports
NEWS: And how do you think this market will evolve??
Portugal: In the short term, increasing local production to meet demand. In the longer term, changing the profile of products based on what we project will turn consumer taste: having a new line of products from 2023 and 2024. Some will be electrified and others will be based on a new common regional platform.
NEWS: Something that has surprised you about the evolution of the Argentine market that suffered from everything, in addition to the pandemic…
Portugal: What caught my attention the most was the resilience of the dealer network. In a scheme of enormous volatility in the market volume (in a short time we went from a million units per year to 350 thousand non-stop) and even so the creativity of the network that is made up of medium-sized companies, managed to endure and get through this long crisis.
NEWS: The current points of sale: how do they play in the interaction with the digitization of the market?
Portugal: At Renault we believe that the dealership experience adds substantial value to the buying process. We are clear that this experience is becoming digital, but we highly value direct contact for commercial interaction and strengthening the bond. In short, we do not believe that the future will be 100% digital.
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