The circular economy has followed Renault since the early 2000s. Within four years, a new component will begin with the launch of a new recycling “pole”. The French automaker has just announced via Sunday Newspaper that he expected to generate a share of 2% of his annual turnover, or more than one billion euros.
This ecological project will cost him Flins factory. Near Aubergenville, west of Paris in the Yvelines, Renault will close its assembly lines by 2025. A total conversion therefore, mentioned at the end of last year, and which should allow Renault to increase his growth. To the newspaper, Renault CEO Luca de Meo explained:
“Our ambition, by 2030, is to achieve more turnover than by assembling cars there”. A target estimated at “One billion euros […] in the circular economy ”.
“Re-Factory”, a recycling center
The Renault Flins address, inaugurated in 1952, will therefore see its activity completely changed. It will move from the assembly of new vehicles for the brand to participation in a wider recycling activity, in particular with the arrival of electric car components, for an increase in the impact of the circular economy on future production.
Luca de Meo has announced that he will “soon” detail the French manufacturer’s strategy in the electrical sector, “To maintain our leadership in this key area”. He also insinuated that the advance of Renault and Nissan (Groupe Renault) over the Germans and Tesla was still relevant.
“We have a real competitive advantage, since we are the first to receive batteries in second life. “
It is difficult to know when Renault will make its next report. Its most recent, at the beginning of January, was the occasion to mark the plan for the next five years of the manufacturer as a “technological” company. Next Friday, an update on the results of the first quarter of 2021 is planned.
The “Renaulution”, as they named it internally, plans to create a “Electric vehicle production center which could be one of the largest in the world”, as announced by the Managing Director, before specifying: “But you will have to help me”. In parallel to the reorganization of Flins, on the other hand, a new production center for electric cars will see the light of day in the North.
In addition to electricity, the circular economy and technology, Renault also intends to accelerate its plans in emerging countries. In Latin America, India and South Korea, precisely where sales are made at higher margins. By 2025, a reduction of 3 billion euros in fixed costs, and a 30% lowering of the breakeven point for the volume of production will be the main objectives, also illustrating the recovery.