Renault has developed a revolutionary development planJanuary 14, 2021
Renault reveals its ‘Renaulution’ strategy for its radical transformation.
Groupe Renault has unveiled an important new strategic plan, Renaulution, to spur recovery and future growth for the company, which will include a huge expansion of Renault’s EV range, an expansion of Dacia’s budget car range and a reimagining of Alpine as an all-electric brand.
The strategic plan was developed by new CEO Luca de Meo, who called it a “deep transformation” of Renault’s business model, with the Renault Group’s focus shifting from maximizing volumes to increasing vehicle value and profitability.
Renaulution builds on the group’s current recovery and growth plan and will be in three phases. The ‘revitalization’ phase will last until 2023 and will focus on increasing the company’s margins and generating cash, while the ‘renewal’ phase, which will last until 2025, will include an update to the Group’s core brands to increase profitability.
Once these goals are met, the “revolution” phase will begin in 2025 and will aim to shift the company’s business model to “technology, energy and mobility” with a focus on electrification and new mobility schemes.
The Renault Group says that under the new plan it will shift its focus from maximizing its market share and sales to profitability, the ability to generate income and the efficiency of its investments with the aim of reducing investment in research and capital expenditures and increasing its operations by 2025.
Renaulution’s new plan includes a new strategy for each of the three key brands of the Renault Group. According to the plan, de Meo wants the Renault brand to become a leader in electrification by 2025, including the creation of an “electric pillar”, likely in northern France as the group’s key EV business. It will also launch a new hydrogen joint venture with US firm Plug Power to gain a 30% share in the European LCV market.
By 2025, Renault has pledged that half of the models it launches in Europe will be purely electric vehicles, with an emphasis on hybrid powertrains, which will account for 35% of total sales.
Renault also pledged to expand its segment mix with a “C segment offensive” to strengthen its position in the European market and focus on profitable segments in Latin America and Russia.
The brand will once again focus on “embodying modernity and innovation” even outside the automotive industry. Renault aims to become a “key player” in technology, including cybersecurity, as well as a major player in the French economy, which is related to electric vehicles and related energy services.
Alpine will be reorganized into Renault’s motorsport and performance division with a range of all-electric vehicles. The sports car sub-brand will include the Renaultsport and motorsport division, including the Renault F1 team, which has been renamed Alpine F1.
Alpine will have a “100% electric product plan” built on the Renault-Nissan-Mitsubishi alliance CMF-B and CMF-EV platforms. It will also work with Lotus to develop a “next-generation sports electric car” that will likely replace the current A110. The Renault Group expects Alpine to be profitable by 2025.
Groupe Renault’s budget brands will continue to focus on low-cost models, although they will expand their lineup with the larger C segment. Dacia will receive a new “super-efficient” business model to improve efficiency by optimizing its lineup by moving from four existing platforms to one, from 18 body types to 11 and increasing production per unit.
The two brands will also significantly expand their lineup, with seven new models to be launched by 2025, including two in the C segment above current lineup leader Duster. It is not clear how many of these models will be Dacia and how many Lada, which is focused on the Russian market. Dacia will also revive some “iconic models” and improve CO2 efficiency with a focus on hybrid LPG and E-Tech systems.
Groupe Renault will also launch a new business unit under the Mobilize brand to develop its interests in data services, mobility and energy, including car sharing schemes. The goal is for Mobilize to account for 20% of the group’s revenues by 2030.
As part of this plan, the Group will develop four special vehicles for transportation: two for car sharing, one for carrying passengers and one for delivery. Mobilize will also focus on developing new subscription, leasing and pay-as-you-go businesses, increasing vehicle life.
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