Renault needs to get more profit. With that message the brand new CEO Luca de Meo has been put to work. He came up with a plan that would save Renault € 2 billion, but according to new talks, even more far-reaching measures must be taken.
Since taking office at the beginning of this year, De Meo has spoken about a – are you good? – ‘Renaulution’. Renault must evolve into a brand that will make more profit than it does now. For this, the costs have to be structurally reduced. However, the announced cut of € 2 billion does not seem to be enough, according to new reports. Reuters recently spoke with the new CEO. During this conversation, De Meo made some staggering statements, because according to him he might have to go further than that to get the brand back on its feet.
With a slanted eye, compatriot Peugeot is looking at, which has managed to structurally reduce costs and came up with a profitable vehicle range. Renault should also be able to do that, but before that, there will be hard blows. Since De Meo’s took office, pieces of his restructuring plan have been trickling out. For example, the brands within Groupe Renault are divided into four main groups: Renault, Dacia, Alpine and new mobilities. Within two years, Renault wants to save the aforementioned € 2 billion by, among other things, cutting 15,000 jobs.