Striking statements from Renault CEO Luca de Meo. He argues that Renault should review its market position, taking an example from the major competitor: Groupe PSA.
According to brand-new CEO Luca de Meo, Renault has to make a major overhaul to move into the future stronger. The experienced Italian top man has been recruited to make this happen. He himself calls it the ‘Renaulution’. A nice term, but what does he really want to do? In conversation with Automotive News he explains, among other things, that Renault should review its brand identity. According to De Meo, it is not yet specific enough and it hangs somewhere ‘between affordable and premium’. The direct competitor, Groupe PSA, has set a clear example in this, he thinks.
“I want Renault to move up a bit. In essence, we have to follow the line that PSA has been walking for the past five years.” In concrete terms, this means a clearer division of roles for Renault and subsidiary brand Dacia. He looks at PSA and puts ‘his’ brands next to their brands: “For Renault it’s Peugeot, for Dacia it’s Citroën.” That probably means that Renault should become a little less generic and Dacia should abandon some of its simple and ‘warmed up old Renaults’ image. The Meo is clear, Dacia must remain the brand for the smaller fair, but have more of its own identity. “We want Dacia to thrive more as a standalone brand than as a sub-brand of Renault.”
For Renault, according to De Meo, there is mainly something to learn from PSA when it comes to the power in the C-segment. That is now supported by the Mégane and the Kadjar, but they are both of age and certainly in the case of the Kadjar the sales numbers are disappointing. PSA meanwhile sells Peugeots 3008, among others, like hot cakes. “They are much stronger in the C segment. There you have both good margins and sales numbers. In terms of profit, this is good for three times as much worldwide as the B segment.” The fact that the Clio is still doing well is relatively so a cloth for the bleeding. The production version of the Mégane eVision, an electrically powered crossover next to the Mégane, may well become one of the most important Renaults in years.