Q: In your view, what are the reasons for high sales of the Renault cars on other markets outside France last year?

A: Last year the sales in Europe were very good especially thanks to Italian market, because the Italian government offered state subventions to those who replaced their old car with a new one. One could say the Italian market exploded last year. On other European markets we are experiencing lower growth with the exception of French market were the sales decrease. The increase of sales last year was only temporary and boosted artificially by the Italian government. In this and next year we do not expect the same and I believe that the European market will become more stable and without high jumps we have gone through last year.

Q: What about the sales on domestic, French market? Last year it was not really successful. Why?

The story of French automobiles market is equal to Italian story. French government considerably stimulated sales two years ago. People were massively buying cars, many of them not having planned to, until the state stopped subventions. After that the sales stopped and the market did not normalise until after 12 months. This shows that such governmental actions are not the most appropriate. The buyers are forced into premature acquisitions that are inevitably followed by longer low sales period. We hope that we have overcome such troubles and that this year we will achieve planned 10-percent growth, in normal way without state subsidisation.

Q: Do you think that what had happened in Renault plant in Vilvoorde, Belgium, could happen in Novo Mesto, Slovenia, too? Namely, you simply closed up the plant due to lack of competitiveness in despite of huge protests?

It will definitely not happen in near future, although it is important that the Novo Mesto plant remains competitive on middle-European markets and on the territory of ex Yugoslavia, Czech republic, Slovakia and Poland. In all those state competitive plants exist. To remain such, also all their suppliers must remain competitive. The future of the Novo Mesto plant depends only on their competitiveness, what holds true also for all other our plants. Besides, we want also Slovenia to become a member of European Communities, which would certainly improve also its operation. Albeit the plant is positioned in Slovenia it has European functioning and it should remain that way. For its future development it is essential that it integrates with Europe and is not chopped off.

Q: Auto market in the USA is undoubtedly attractive for automotive industry. Are you planning to spread your business also overseas?

At the moment we do not plan selling of cars in the USA. Main reason for this is only apparently big market there, composed mainly from the two parts, neither of which are in our assortment, namely all wheels drive delivery vans and combined land vehicles. To be honest, the profitability in those two segments is much higher than in other, more conventional cars. The sales of conventional cars would gain very low profit. Entering such type of market would be financial fiasco for Renault. We see our expansion outside Europe first of all in South America, Asia and Russia.

Q: What do you think about China. After some political changes that rumour has already that market could become one of the most promising in the next millenium?

A: We are present on the Chinese market only with a small branch office. Administration procedures that are too complicated and not clear and unpredictable affairs make conducting business successfully almost impossible. To make a decision about raising a plant, starting producing and selling cars is far from enough out there.

Q: In 1999 new European currency, euro will be introduced. Do you think it will have influence on profitability and on the production of Renault?

I strongly support introduction of the new common European currency. I think that it is hard to have a common market with different currencies, for instance think about difficulties with Italian Lira and its 25-percent fluctuation or Spanish Peseta and its devaluation compared to other European currencies. This causes too big market instabilities and consequently too much troubles to car factories. Thin about the troubles Volkswagen had which he could not influence on. The real culprit was European monetary system permitting such financial fluctuations. Automotive industry needs euro. It will make life more difficult but competitiveness will be maintained more easily. The market will be more steady also for non-European car manufacturers: risk for appearance on the common market will be lower, prices will be more easily comparable as the prices for instance in Germany will be nominated in the same currency as in France. Consequently, the prices will tend towards unification. The differences in prices in different states will disappear, that means it will diminish. The market will become more competitive.

Q: In 1998 Renault celebrates its centenary. Not quite seriously, would you dare to predict the same success Renault has today also after another hundred years?

A: Well, at next centenary I will definitely be not here, which I sincerely regret. But I am sure, that Renault will get through it successfully. For the first hundred years there is a rule that we keep continuously investing in new ideas. To this one we will add a new one that is constantly to search for and to develop new markets. Here I have in mind new, yet undeveloped markets. You must realise that 80 percent of world car production is bought by not more than 20 percent of people world-wide. A lot of people still does not buy or even not know automobiles. This is a kind of market niche we shall not neglect.