French giant Renault is shaking up its structure to embrace electricity and increase value in its offerings. Motorhub attended a press conference call with Luca de Meo, CEO Group Renault today where he pointed out ‘a new strategic plan, which aims to shift Group Renault’s strategy from volume to value.’
Renault tells us the plan is structured in ‘three parallel phases: “Resurrection”, running up to 2023, will focus on margin and cash generation recovery, “Renovation”, spanning up to 2025, will see renewed and enriched line-ups, feeding brand’s profitability and “Revolution” from 2025 and onwards, will pivot the business model to tech, energy and mobility; making Group Renault a frontrunner in the value chain of new mobility.’ Renault says the ‘Renaulution’ plan will restore its competitiveness by: taking its 2022 plan one step further, driving efficiency through engineering and manufacturing, to reduce fixed costs and to improve variable costs worldwide.
Luca de Meo, CEO Groupe Renault, said: “The Renaulution is about moving the whole company from volumes to value. More than a turnaround, it is a profound transformation of our business model. We’ve set steady, healthy foundations for our performance. We’ve streamlined our operations starting with engineering, adjusting our size when required, reallocating our resources in high-potential products and technologies. This boosted efficiency will fuel our future line-up: tech-infused, electrified and competitive. And this will feed our brands’ strength, each with their own clear, differentiated territories; responsible for their profitability and customer satisfaction. We’ll move from a car company working with tech to a tech company working with cars, making at least 20% of its revenues from services, data and energy trading by 2030.
We’ll get there steadily, leaning on the assets of this great company, on the skills and dedication of its people. The Renaulution is an in-house strategic plan we’ll roll-out and achieve the same way we’ve crafted it: collectively.”
Renault is aiming for greater efficiency going forward and will reduce the number of platforms it uses from six to three (with 80 per cent of Group volumes based on three Alliance platforms) and its powertrains will streamline from eight to four families. Renault is planning to build some large Renault under the plan – but traditionally large Renaults do not do well in right hand drive markets (UK & Irish markets) and some Renaults are not even manufactured in right hand drive like the Espace and Talisman. If the UK isn’t keen on a Renault, Renault may not build it in RHD at all and this means Irish buyers do not get the car. De Meo told us the new platforms will offer good value and are adaptable – making the end vehicles competitive on price. This will be the key to success.
So what about the cool Renault 5 concept. De Meo says he intends to build the new Renault 5 EV in the North of France but it is cost dependent. Nothing is set in stone yet but de Meo is anxious to make it happen. Renault will tap into its heritage and with the adaptability of platforms (EV especially) anything is possible. De Meo is very proud of his designers and he says that the design language for each of Renault’s brands will become more distinct. On the Renault/Nissan Alliance De Meo said Renault’s destiny in intertwined with Nissan and he pointed to the high percentage of commonality of parts in its vehicles.
De Meo on Dacia says that he continues to see the Romanian brand as a complete entity and that its designs will be unique to it with a Romanian tilt. On hydrogen as a fuel source, de Meo said hydrogen features in Renault’s plans and it will develop the fuel source further starting in light commercial vehicles (where it already has a presence). Good news for Motorsport fans Renault says it remains committed to Formula 1. Renault has also partnered up with Lotus (with its Alpine brand) to deliver a future electric sports car. Alpine is not on sale in Ireland.
Renault says globally its four brands will deliver 24 new model launches by 2025 with 10 full EVs. Half of its European launches will be EVs and these vehicles will have a higher profit margin than ICE engined cars. This new value-driven organisation and product offensive will drive a better pricing and product mix. Renault is aiming to be profitable (including investment in motorsport) by 2025.