Groupe Renault: new models and new focus

Groupe Renault prepares for the future and presents a new strategy consisting of three phases. Until 2025, the Groupe Renault brands will be presenting no fewer than 25 new products, half of which are in the Megane and Talisman segment. Many of the newcomers are fully electric.

Renaulution. That is the name of the strategy that Groupe Renault will implement in the coming years. The group wants to shift its focus from selling the largest possible number of cars to increasing the value. Plan Renaulution consists of three phases that run parallel to each other: Resurrection, Renovation and Revolution. The Resurrection phase is the period until 2023 in which Groupe Renault wants to increase its profit margins and simply get more money in the coffers. In the Renovation phase, up to and including 2025, Groupe Renault says it will significantly expand its model range, thereby increasing profitability. Revolution, the name of the phase from 2025, aims to make Renault one of the largest players in the field of new mobility. Another change: Groupe Renault says it no longer wants to measure its performance in terms of market share and sales numbers, but in, for example, profit and cash flows.

Groupe Renault wants to increase its gross profit margin to 3 percent by 2023, a percentage that should even be 5 percent by 2025. How Groupe Renault will streamline? Among other things, by reducing the number of platforms used from six to three (CMF-B / EV – CMF-CD and CMF-EV). The car group also wants to reduce the number of engine families used from the current eight to four. All planned newcomers who still use the already known platforms will be rolled out within three years. Costs must also be further reduced. Groupe Renault aims to have saved € 2.5 billion by 2023 and € 3 billion by 2025. The variable costs, set against the number of cars produced, must be € 600 lower in 2023. Groupe Renault will also spend the coming less in R&D (research and development). The group wants to invest another 8 percent of its turnover in R&D by 2025, currently that percentage is 10 percent.

Groupe Renault says it will market as many as 24 new or renewed models by 2025. Half of them are in the C and D segment. A striking focus on ‘larger’ models. Of the 24 newcomers, at least 10 are fully electric. Groupe Renault divides its activities into four branches, Renault, Dacia and Lada, Alpine and Mobilize.

Renault

Renault must, according to Groupe Renault stands for ‘modern and innovative’ and places a great focus on technology, powertrains and mobility services. Renault promises that the brand will launch a true offensive in the C-segment in Europe. Renault will become the major EV player within Groupe Renault. The brand must have the ‘greenest’ line-up in Europe. Half of Renault’s upcoming newcomers will be EVs. In addition, the brand is aiming for 35 percent of its sales to consist of hybrids and plug-in hybrids. Renault will also pay more attention to fuel cell technology, for example by entering into a joint venture.

Dacia and Lada

Dacia ‘remains Dacia, with a hint coolness’ – that is the words of Groupe Renault about its Romanian budget brand. Lada remains ‘rough and tough’. That means that the brands will continue as they are currently doing, but not quite. Both Dacia and Lada will break through the C-segment for the first time in the coming years, which means that there are larger models of the two sober brands in the barrel. The four different platforms used by Dacia and Lada will be reduced to one modular base. Most likely the modular base derived from the CMF-B platform that Dacia is already using under the new Sandero. The number of body styles, currently 18, must also be reduced to 11. Dacia and Lada will launch 7 new models up to and including 2025, 2 of which are in the already mentioned C-segment. Good news, the brands are going to revive ‘iconic models’. So don’t be surprised if Lada really comes up with a new Niva. In addition to Dacia, Lada will also use LPG engines. In addition, Dacia will eventually have access to Renault’s hybrid E-Tech technology.

Alpine

Alpine is being reformed. Renault Sport Cars, Renault Sport Racing merge with it. Alpine must eventually become fully electric. The brand announces, among other things, the arrival of a fully electric sports car that it will develop together with Lotus. Previously, Alpine would develop a car with Caterham, but unfortunately that cooperation ended. Alpine’s F1 adventures just continue. Alpine must be profitable by 2025.

Mobilize

Mobilize is a new industry that will, among other things, deal with new mobility, data and various services related to energy. Cars don’t have to stand still for as long, so count on the fact that various mobility services will be created. Groupe Renault also wants, among other things, to have reduced its CO2 footprint to a zero point. Groupe Renault comes with four cars aimed at mobility. Two of them are for car-sharing services, one for Uber-like services while the last for last mile delivery is deployed.

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