Luca de Meo, CEO of the Renault Group, presented the “RENAULuTion,” a new strategic plan that seeks to change the French company’s focus from volume to profitability. This plan will consist of three phases: Resurrection (until 2023, it will seek to recover margin and generate liquidity), Renovation (until 2025, it will involve the renewal and enrichment of the ranges), and Revolution (from 2025, it will try to swing the economic model of the company towards technology, energy, and mobility).
To restore Renault’s competitiveness, it will seek to improve engineering and production efficiency to reduce fixed costs. Of course, collaboration with the other Renault-Nissan-Mitsubishi Alliance members will be essential to achieve these goals.
Among other financial objectives, the Renault Group wants to achieve more than a 3% operating margin by 2023, with some 3 billion operational cash flow accumulated between 2021 and 2023. Investments and expenses in R&D will be reduced from 10% to 8% of the turnover. By 2025, the goal is to achieve a 5% operating margin, with 6 billion euros of accumulated operating cash flow.