The Renault Group presented this Thursday its global strategic plan, entitled “Renaulution”, designed to grow the brand in the coming years. This plan includes a significant expansion of the electric vehicle range, an increase in the Dacia portfolio and the reinvention of Alpine as a brand of exclusively electric competition cars.
The strategic plan was presented by the CEO of Renault, Luca de Meo, who in the presentation to the press spoke of a “profound transformation” of the business model, with a fundamental change of focus: from maximizing volume to increasing value obtained by vehicles .
“Renaulution” is based on the French brand’s three-stage recovery and growth plan. The first, “resurrection”, will continue until 2023 and focus on financial recovery; the second, “renewal” will extend until 2025 with the aim of renewing the Renault Group’s brand portfolios and increasing profits; the third, “renovation”, will start in 2025 and will shift the focus from the business model to “technology, energy and mobility”, placing the company at the forefront of electrification and new mobility schemes.
The Renault Group believes that, through this new strategic plan, it will be able to shift its focus from maximizing its market share to the ability to generate profits and efficiency in its investments.
Luca de Meo said that half of the Renault Group’s profits come from five European countries, and that almost half of its portfolio consists of vehicles from local markets. Likewise, he admitted that the Dacia and Renault brands got too close.
The new strategic plan foresees that the Renault Group will focus on its products, changing from six to three platforms, with 80% of its volume based on the new Alliance platforms. Thus, all models based on the existing platforms will be launched in the next three years.
Changing the company’s focus from volume to profits will mean a reduction in the total number of vehicles manufactured from 4 million units in 2019 to 3.1 million in 2025.
The “Revolution” plan introduces different strategies for the different brands of the Renault Group:
Luca de Meo wants the Renault brand to become a leader in electrification in 2025, namely by establishing an “electric pole”, probably in the north of France, which will be the “headquarters” for manufacturing 100% electric vehicles of the brand. The CEO says that “Renault will incorporate modernity to offer solutions to the core of the market. EV, hybrids, technology and services will be given a boost in order to attract consumers from the mainstream market ”.
In 2025 Renault intends that half of its launches in Europe will consist of electric vehicles and that 35% of its total sales will come from hybrids. In addition, the brand promises to boost its mixed segment with a “segment C offensive” to strengthen its position in Europe and focus on profitable segments in Latin America and Russia.
This renewal of the brand’s focus, says Luca de Meo, goes beyond the automotive industry. Renault aims to become a “key” player in technology, big data and cybersecurity, and wants to be decisive in the French “circular economy” with respect to EV-related energy services.
This Renault Group brand will also be reinvented to become the company’s benchmark in terms of performance and motor sport, with an exclusively electric vehicle portfolio. The sports sub-brand will be featured in racing cars and the sports division – including the Renault F1 team, which is rebranding to Alpine F1.
Alpine is thus integrated into a 100% electric vehicle strategy, with EVs being developed on the Alliance CMF-B and CMF-EV platforms. Likewise, it will develop a “new generation of racing cars” in partnership with Lotus.
These brands will continue to be the most economical brands, but the offer will be expanded to the C segment. Dacia will have a “super efficient” business model, going from the current four platforms to just one and from 18 bodies to 11. On the other hand , the production volume of each model will be increased.
The two brands will substantially increase their portfolio, with seven new launches planned by 2025, including two for the C segment. What is still unknown is how many of these models will be Dacia and how many will be Lada.
The Renault Group will also launch a new business unit called Mobilize, created to develop business in the areas of data, mobility and energy services. Mobilize’s goal is to represent 20% of the group’s profits in 2030 and “allow Renault to go beyond the automotive industry”, according to Luca de Meo.
Mobilize will also focus on developing underwriting, leasing and pay-as-you-go solutions to maximize vehicle life.