Renault presents “Renaulution” savings plan

Source: added 14th Jan 2021

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Renault has unquestionably had turbulent times. The affair about the former boss Ghosn has left its mark and financially there have been lighter periods in the long history of the brand. Espace and Talisman are not big hits, the Mégane looks older than it is in some details, despite the overhaul. The new Renault boss Luca de Meo now wants to take countermeasures with a show of strength. To this end, on Thursday he presented a three-stage strategic plan, which the French seriously dubbed “Renaulution”.

Until 2023 the urgent improvement of the margin is in the foreground, parallel to 2025 new vehicle segments are to be developed. From 2025 there should be an increased focus of the business model on technology, energy and mobility. By then Renault should have the “greenest” drive mix of all manufacturers in Europe.

The main goal is the economic recovery of the company. Renault wants to switch from “volume to value”, they say. The austerity package that has already been decided on, which at least includes around 2 billion euros, should only be the beginning. The efficiency in development and production should be increased further, fixed costs should be reduced. Renault is very clear about the goals: “By 2023 an operating group margin of more than 3 percent and a cumulative operating free cash flow in the automotive sector of around 3 percent should be achieved Billion euros (2021 – 21); investments should drop to below 8 percent of sales . ”

Less instead of more Last year Renault had announced in the context of the economic recovery around 15. 000 digits. In the current strategy paper, there is at least nothing to be read about further job cuts – which does not mean that this point has to stay that way. Because the plan contains a number of simplifications that suggest a downsizing. The number of platforms and drives is to be reduced. Fewer cars are to be built in the future: Instead of 4 million, there should be only 3.1 million 2025. What Renault describes as “increased efficiency with suppliers” is likely to cause considerable unrest there.

High losses 2020 Like other car manufacturers, Renault was badly affected by the corona pandemic and its economic consequences last year. Group sales fell in the full year 2020 by a good 21 percent to just under three million vehicles. In the first half of the year, the manufacturer posted a record loss of around 7.3 billion euros with its Japanese partner Nissan, also because of the deep red figures. Renault could not continue like this as a group.

The core brand Renault wants 14 new ones in the next four years Bring models onto the market, half of them with battery-electric drive. As with the competition, the hybrid drive will play a bigger role than before. Renault has taken a technically exciting and unusually complex path. It remains to be seen whether the customers will join in, because the surcharge compared to conventionally powered models is considerable.

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brands: Boss  Built  First  MERCURY  Million  New  Nissan  other  Value  

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