The arrival of Luca de Meo at the head of Renault, during the summer of 2020, has just taken on its full meaning this Thursday, January 14. The new CEO of the French automaker has unveiled his next strategic plan for the next five years to the press and financial analysts.
To enter the new decade and exit a year 2020 with delicate financial statements, the new CEO has deeply turned Renault in the reality of an industry in full turmoil. Technology, services, and the highest yields will be the key to this new roadmap discussed under the title of “Renaulution”.
As he used to do with other car manufacturers during his career, the man at the head of the French group decided to present a car concept resuscitating an icon: it will be the Renault. 5 this time around, and its production under electric technology could take root sooner or later.
The only condition – summing up the major challenge awaiting Renault – will be that solidarity and teamwork be present: “We are going to create a production center for electric vehicles which could be one of the largest in the world […] But you have to help me “ he indicated this morning to the press.
A technology company, and services
In essence, the plan envisioned by Renault and its CEO for the next five years looks like a real financial recovery. Again. But the approach today is different. It will aim for the prosperity of the world of mobility of tomorrow, which concerns more efficient cars and parallel services to implement both technologies and offers for all uses.
In addition, Renault should increase its pace in emerging markets, Latin America, India and South Korea, where sales are made at higher margins. By 2025, a reduction of 3 billion euros in fixed costs, and a 30% reduction in the breakeven point for production volume will be the main points illustrating this recovery.
For its announcement to the general public, Renault sought to free itself from the automobile manufacturer’s cap. The term would seem aging. “We will move from an automotive company using technology to a technology company using cars, where at least 20% of revenues will come from data services and energy trading by 2030” Luca de Meo was saying.
In order not to deny his origins and his history, the CEO did what had worked in his career: resurrect an old model. It will be the Renault 5, but not only. In 2024, a new model from the Russian manufacturer Lada (which has belonged to the Renault group since 2018) will also be marketed.
As a car from the world before, with current electric technologies, this electric R5 will give pride of place to another machine, with two seats this time, and badged with a new logo that you will have to familiarize yourself with. This is the next brand that the Renault group wants to have on the market, and which should earn 20% of its turnover in 2030: “Mobilize”.
It will be the entity most able to offer new mobility solutions, with particular emphasis on car-sharing vehicles. She will come “Develop new sources of profits, from data, mobility and energy services for the benefit of vehicle users”. The EZ-1 concept shown above is the first to show up, but a sedan is also expected to make an appearance, as is a delivery van.
“Deep, structural change”
“My goal is to bring Renault to a level of economic performance that it has never achieved, or in an anecdotal way. There, the change will be deep, structural ”, commented personally Luca de Meo. The next meeting will therefore be in five years to measure the implementation of these changes, and if Renault will have seen it right.
Electric cars, car-sharing, micro-mobility, rationalization and simplification, the company will have used a vocabulary well known to new manufacturers in the sector. With the exception, perhaps, of the autonomous car lexicon.