After the approval of the Board of directors, Luca de meo, CEO of the Renault Group, has presented the plan «Renaulution«, A new strategic plan that aims to reorient the strategy of the Renault Group.
According to the French brand, this strategic plan is structured in 3 phases launched in parallel:
- The phase “Resurrection”, which will run until 2023, will focus on recovering the margin and generating liquidity,
- The phase “Renewal”, which will continue until 2025, will lead to the renewal and enrichment of the ranges, contributing to the profitability of the brands,
- The phase “Revolution”, which will begin in 2025, will shift the Group’s economic model towards technology, energy and mobility, making Groupe Renault a pioneer in the new mobility value chain.
The Renaulution plan will allow restore the competitiveness of the Renault Group improving engineering and production efficiency, to reduce fixed costs and improve variable costs around the world. This strategy also takes advantage of the Group’s current industrial strengths and its electrical leadership in Europe, so they will seek to rely on the Alliance to increase the attack force in terms of products, activities and technologies.
The Group is also set new financial goals And it is that in 2023, the Group aims to achieve more than 3% of the operating margin and reduce investments and R&D expenses by around 8% of the turnover. By 2025, the Group aims for a Group operating margin of at least 5%.
According to the brand itself, more than a radical change, it is a profound transformation of its business model.
The Renaulution Plan includes the following main elements:
– Strengthen the efficiency, speed and performance of engineering and production, accelerated by the Alliance: o Rationalization of platforms from 6 to 3 (with 80% of the Group’s volumes on three Alianza platforms) and powerplants (from 8 to 4 families) o
– Orient the Group’s international presence towards high-margin markets: in particular in Latin America, India and Korea, taking advantage of competitiveness in Spain, Morocco, Romania, Turkey and creating more synergies with Russia.
– Establish strict discipline in terms of costs or reduction of fixed costs.
This new organization will create a rebalanced and more profitable product portfolio with 24 launches by 2025, of which half will be in the C / D segments and at least 10 vehicles will be electric.
What will happen to the brands under the Renault umbrella?
– Dacia-Lada: Dacia is still Dacia but with a touch of freshness, and Lada, always robust and solid, will continue to offer affordable products, based on proven technologies and aimed at customers seeking “smart shopping”, moving up the range towards the C segment.
– Alpine: The Alpine brand will bring together the Alpine, Renault Sport Cars and Renault Sport Racing models into a new global entity that will be dedicated entirely to the development of exclusive and innovative sports cars. A 100% electric brand with a new product plan on the CMF-B and CMF-EV platforms.
The F1 will be at the center of the project, through a completely renewed commitment to the championship. They will also develop a new generation electric racing car together with Lotus.