Renault launches its new wave ‘Renaulution’ strategic plan focusing on being a tech, service and clean energy brand
French carmaker making big changes to become a cleaner, more profitable and efficient company
Renault just launched its latest strategic plan which aims to shift Groupe Renault’s strategy from volume to value. The French carmaker will focus on being a technology, service and clean energy brand. Part of this plan includes the return of the iconic Renault 5, only this time it will be a clean driving electric version.
The Group’s new strategic plan is structured in three phases that are launched in parallel. The first phase will be ‘Renovation’ and will run until 2023 and focus on margin and cash generation recovery. The second phase will be ‘Renovation’ that will span until 2025 and will see renewed and enriched line-ups to feed the brand’s profitability. The final phase is ‘Revolution’ and will run from 2025 onwards and will pivot the business model to tech, energy and mobility to make Groupe Renault a frontrunner in the value chain of new mobility.
The Renaulution plan aims to restore Groupe Renault’s competitiveness by driving efficiency through engineering and manufacturing to reduce fixed costs and to improve variable costs worldwide. They will leverage the Group’s current industrial assets and electric leadership in Europe and boost its reach in products, business and technology coverage. Renault will also accelerate mobility, energy-dedicated and data-related services, and drive profitability through four differentiated business units based on empowered brands, customers and markets oriented.
The Renaulution plan will ensure the Group’s sustainable profitability while keeping on track with its Zero CO2 footprint commitment in Europe by 2050. The Group also hinted of what’s to come for Renault, Dacia and Mobilize. Along with an all-new electric Renault 5, there’s an all-electric future for Alpine, which is the Group’s sports car and racing division.
Mobilize is the Group’s new business unit aimed at developing new profit pools from data, mobility and energy-related services for the benefit of vehicle users. Mobilize will enable Groupe Renault to jump faster into the new world of mobility, providing solutions and services to the other brands and external partners.
Luca de Meo, CEO Groupe Renault, said: “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.”