Groupe Renault "Renaulution" strategic plan

Groupe Renault "Renaulution" strategic plan

17.01.2021: Following approval by the Board of Directors, Luca de Meo, CEO Groupe Renault, presents today “Renaulution”, a new strategic plan, which aims to shift Groupe Renault’s strategy from volume to value.


Following approval by the Board of Directors, Luca de Meo, CEO Groupe Renault, presents today “Renaulution”, a new strategic plan, which aims to shift Groupe Renault’s strategy from volume to value.





This strategic plan is structured in 3 phases that are launched in parallel:




    “Resurrection”, running up to 2023, will focus on margin and cash generation recovery,


    “Renovation”, spanning up to 2025, will see renewed and enriched line-ups, feeding brand’s profitability,


    “Revolution” from 2025 and onwards, will pivot the business model to tech, energy and mobility; making Groupe Renault a frontrunner in the value chain of new mobility.




The Renaulution plan will restore Groupe Renault’s competitiveness by:



    taking the 2o22 plan[1] one step further, driving efficiency through engineering and manufacturing, to reduce fixed costs and to improve variable costs worldwide,


    leveraging on current Group’s industrial assets and electric leadership in Europe,


    building on the Alliance to boost our reach in products, business and technology coverage,


    accelerating on mobility, energy-dedicated and data-related services,


    driving profitability through 4 differentiated business units based on empowered brands, customers and markets oriented.




A new organization will roll-out this plan: the functions, with engineering at the forefront, are accountable for the competitiveness, costs and time-to-market of the products of the brands. The fully-fledged, clear and differentiated brands manage their profitability.



In accordance with this value-driven organization, the company will no longer measure its performance on market shares and sales but on profitability, cash generation and investment effectiveness.





The Group sets new financial objectives:


    By 2023, the Group targets to reach more than 3% group operating margin, about €3bn of cumulative automotive operational free cash flow[2] (2021-23) and lower investments (R&D and capex) to about 8% of revenues,


    By 2025, the Group aims for at least 5% group operating margin, about €6bn of cumulative automotive operational free cash flow² (2021-25), and a ROCE[3] improvement by at least 15 points compared to 2019.




The Renaulution plan will ensure the Group’s sustainable profitability while keeping on track with its Zero CO2 footprint commitment in Europe by 2050.



    Luca de Meo, CEO Groupe Renault, said
: The Renaulution is about moving the whole company from volumes to value. More than a turnaround, it is a profound transformation of our business model. We’ve set steady, healthy foundations for our performance. We’ve streamlined our operations starting with engineering, adjusting our size when required, reallocating our resources in high-potential products and technologies.



 This boosted efficiency will fuel our future line-up: tech-infused, electrified and competitive. And this will feed our brands’ strength, each with their own clear, differentiated territories; responsible for their profitability and customer satisfaction. We’ll move from a car company working with tech to a tech company working with cars, making at least 20% of its revenues from services, data and energy trading by 2030.



    We’ll get there steadily, leaning on the assets of this great company, on the skills and dedication of its people. The Renaulution is an in-house strategic plan we’ll roll-out and achieve the same way we’ve crafted it: collectively.





The Renaulution plan includes the following main elements:

 

 

    Accelerating functions efficiency, which will be accountable for competitiveness, costs, development time and time-to-market.



    Engineering and manufacturing efficiency, speed and performance, boosted by the Alliance:



        Rationalization of platforms from 6 to 3 (with 80% of Group volumes based on three Alliance platforms) and powertrains (from 8 to 4 families)

        All models to be launched on existing platforms will be in the market in less than 3 years

        Rightsizing manufacturing footprint from 4M units in 2019 to 3.1M units in 2025 (Harbour standard)

        Reinvented efficiency with suppliers    
 
    Steer Group’s international footprint towards high margin business: notably in Latin America, India and Korea while leveraging our competitiveness in Spain, Morocco, Romania, Turkey and creating more synergies with Russia.
   




 A strict cost discipline:  
 

        Fixed costs reduction: 2o22 plan achieved earlier and pushed further by 2023 to reach

        €2.5bn, and target €3bn by 2025 (including fixed cost variabilization)

        Variable costs: €600 improvement per vehicle[4] by 2023

        Decreasing investment (R&D and Capex) from about 10% of revenues to below 8% by 2025



All these efforts will strengthen Group’s resilience and lower its break-even point by 30% by 2023.



    Four business units with strong identity and positioning. This new model will create a rebalanced and more profitable product portfolio with 24 launches by 2025 - half of them in C/D segments – and at least 10 full EVs.



This new value-driven organization and product offensive will drive a better pricing and product mix.

 



Renault, La nouvelle Vague




The brand will embody modernity and innovation within and beyond the automotive industry in energy, tech and mobility services, for example.



As part of its strategy, the brand will lift up its segment mix with a C-segment offensive and will strengthen its positions in Europe, while focusing on profitable segments and channels in key markets such as Latin America and Russia.




The brand will lean on our powerful assets:


    Leader in electrification by 2025 with:



        “Electro pole” potentially in the North of France, the Group’s largest EV manufacturing capacity worldwide,
        Hydrogen joint-venture from fuel-cell stack to vehicle

        “Greenest” mix in Europe

        Half of launches in Europe being full EVs, with higher margin contribution than ICE (in €)

        Challenger in hybrid market with 35% hybrid mix

    High-tech Ecosystem assembler: becoming a player in key technologies from big data to cybersecurity, with the “Software République”

    Leader in circular economy with EV & energy-dedicated services through Re-Factory in Flins (France)

 




Dacia-Lada, Tout. Simplement


Dacia, will stay Dacia with a touch of coolness, and Lada, still rough and tough, will continue to offer affordable products, based on proven technologies targeting smart buyers, while breaking the C-segment glass ceiling.




    Super-efficient business models

        Design-to-cost

        Improved efficiency: from 4 platforms to 1, 18 body-types to 11, increasing average production from 0.3m units/platform to 1.1m units/platform.

    Revamped competitive line-up and outbreaking into the C-segment

        7 models launched by 2025, 2 in the C-segment

        Revival of iconic models

        CO2 efficiency: Leverage group tech assets (LPG for both brands, E-Tech for Dacia)

 



Alpine

 

Alpine will combine Alpine cars, Renault Sport Cars and Renault Sport Racing into a fully-fledged, new lean and smart entity, dedicated to developing exclusive and innovative sportscars.



    100% electric product plan to support brand expansion through


        Leveraging the scale and capabilities of Groupe Renault and the Alliance with the CMF-B & CMF-EV platforms, a global manufacturing footprint, a powerful purchasing arm, a global distribution network and RCI Bank and Services financial services, all of which ensuring optimum cost competitiveness.

        F1 at the heart of the project, renewed commitment to championship.

        Developing a next-generation EV sports car with Lotus.

    Aiming at being profitable in 2025, including investment in motorsport.

 


Mobilize, Beyond automotive



This new business unit aims at developing new profit pools from data, mobility and energy-related services for the benefit of vehicle users and to generate more than 20% of group revenues by 2030.



Mobilize will enable Groupe Renault to jump faster into the new world of mobility, providing solutions and services to the other brands and external partners.




    Three missions:



        More time-use of the car (90% unused)

        Better residual value management

        Ambition to 0 carbon footprint



    A unique, accessible and useful offer:



        4 Purpose- designed vehicles, two for carsharing, one for ride-hailing, one for last-mile delivery  

        Innovative financing solutions (subscription, leasing, pay-as-you-go)

        Dedicated data, services and software platform

        New maintenance and refurbishment services (Re-Factory)






Footnotes


   
 The 2o22 plan of reducing fixed costs by more than 2 billion euros over 3 years was presented on May 29, 2020.
    
Automotive operational free cash flow: cash flows after interest and tax (excluding dividends received from publicly listed companies) minus tangible and intangible investments net of disposals +/- change in the working capital requirement
    
ROCE= Auto Operating Profit (incl. AVTOVAZ) * (1- average tax rate) / (PP&E + intangible assets + financial assets - investments in RCI/Nissan/ Daimler + WCR)
   
 At iso mix.





Astrid DE LATUDE- photos © Olivier MARTIN-GAMBIER
 



Permanent-URL: http://www.automobilsport.com/groupe-renault-renaulution-strategic-plan---218359.html

17.01.2021 / MaP

More News

New sales and marketing strategy: BMW Group optimistic about 2021 after posting record Q4 sales
16.01.2021
Pieter Nota: Strong demand and profitable growth expected - Gains of more than 50 percent: electromobility as significant growth driver - Plans to double sales of fully-electric vehicles - Annual investment of triple-digit million amount up to 2025 in digitalisation of sales and marketing creates basis for best customer experience more >>
Grey retains top spot as UK’s most popular new car colour
16.01.2021
      For the third year in a row, grey remains the UK’s favourite new car colour, followed by black and white.    Yellow increases its market share by 50% but red suffers its worst year since 1997.  more >>
Ford’s Windscreen Weather Station Clears View Ahead for Kuga Drivers
16.01.2021
New sensor system automatically keeps the interior of the windscreen mist-freeDrivers of the new Ford Kuga avoid one consequence of physical exertion before getting into cars – the inside of the windscreen misting up. more >>
The driving force behind the Bentley Flying Spur V8: Engine facts and figures
16.01.2021
    4.0-litre, twin-turbocharged V8 develops 135+ bhp per litre       Twin-scroll turbochargers mounted centrally in the V provide rapid response and maximum torque of 770 Nm, available from 2000 rpm more >>
Mitsubishi ambassador shares after-holiday cleaning tips
15.01.2021
•    Back home safely, but what now?•    Vehicle cleaning – the basics•    Focus on all the nooks and crannies, and then some!Mitsubishi more >>
Alpine at the forefront of Groupe Renault's innovation with exclusive sportscar
14.01.2021
   Alpine cars, Renault Sport Cars (RSC) and Renault Sport Racing (RSR) join forces under the Alpine flagship     The new Alpine entity will combine high-tech excellence and passion for racing to develop high-performance, authentic and exclusive sportscars   more >>
2021 Honda Ridgeline Arriving Next Month Ready to Rumble with Rugged New Look
14.01.2021
    Redesigned Ridgeline coming to Honda dealerships starting Feb. 2    Bold exterior design reflects Ridgeline’s exceptionally rugged capabilities    Fully boxed truss-style floor f more >>
Hyundai teases first image of IONIQ 5
14.01.2021
  Image previews fundamental shift in BEV design approach    IONIQ 5 features signature ‘Parametric Pixels’ and eco-friendly elements to offer distinctive design experience    Hyundai’s dedicated BEV lineup brand provides all-new enhanced customer experiences through advanced mobility solutions more >>
Karma Automotive Announces New Dealer Partner in Nashville, Tennessee
13.01.2021
Karma Automotive today announced the opening of its latest addition to its dealer network: Velocity Motorcars in Nashville, Tennessee.Velocity Motorcars serves the greater Nashville metropolitan area, and its opening supports Karma’s continuing expansio more >>
Porsche Boxster 25 Years - New limited-edition anniversary model
13.01.2021
Porsche pays homage to the 1993 Boxster concept carPorsche is celebrating the 25th birthday of its roadster family with a special anniversary model: the Boxster 25 Years. The limited edition is restricted to 1,250 units worldwide and is based on the GTS 4.0 model, w more >>
Groupe Renault and Plug Power join forces to become leader in hydrogen LCV
12.01.2021
    Memorandum Of Understanding (MOU) signed to launch a 50-50 joint-venture (JV) based in France by the end of the first half of 2021, targeting over 30% share of the fuel cell-powered light commercial vehicle (LCV) market in Europe.     Joint-venture will establish in France state-of-the-art innovation and manufacturing capabilitie more >>
All−New Ford F−150 and Mustang Mach−E Earn North American Truck and Utility of the Year
12.01.2021
    All-new, all-electric Mustang Mach-E and the all-new Ford F-150 are named 2021 North American Utility and Truck of the Year by a 50-member independent jury of print and broadcast journalists from the U.S. and Canada    The winning vehicles are benchmarks in their segments based on factors including innovation, design, safety, han more >>
Lexus celebrates the 10 years anniversary of the LFA
12.01.2021
Ten years have passed since the start of production of the LFA, an authentic supercar that revealed a new aspect of Lexus as a committed and visionary manufacturer of world-class high-performance cars.For all its exclusivity and rarity – from the outs more >>
Subaru SA to introduce more powerful 2021 Forester line-up
11.01.2021
•    More powerful 2.5-litre Boxer® engine added•    New Sport trim adds distinctive stylingSlated for local launch in March 2021, Subaru Southern Africa will introduce the MY2021 Subaru Forester wit more >>
New initiative - German Automotive Industry intensifies links to Africa
11.01.2021
The German automotive industry sees potential in Africa and strengthens its ties to the continent. The German Association of the Automotive Industry (VDA) joined hands with the African Association of Automotive Manufacturers (AAAM) as part of the “PartnerAfrica” project of the German Federal Ministry for Economic Cooperation and Development (BMZ). &nb more >>
Groupe Renault announces appointment within Alpine
11.01.2021
Groupe Renault announces the appointment of Laurent Rossi, Director of Strategy and Business Development of Groupe Renault, as Chief Executive Officer of the Alpine brand, effective January 11, 2021. Laurent Rossi will take charge of Alpine Cars, Sport, F1 and more >>
10 car accessories to keep you going in the cold
11.01.2021
10 car accessories to keep you going in the cold    Filomena is in the air in Europe and the drop in temperature has left snowfall across the continent    As this winter is expect more >>
New Skoda Auto SUV for the Indian market is named Kushaq
09.01.2021
› The spelling with “K” and “Q” conforms to the ŠKODA KODIAQ, KAROQ and KAMIQ SUV nomenclature› “Kushak” means king or emperor in the ancient Indian language of Sanskrit› World premiere of the first production model based on the MQB-A0-IN platform specifically developed for the Indian mar more >>
Bentley introduces Digital Commissioning Experience
08.01.2021
    Personalised online experience launched to allow owners to continue to tailor cars to their own tastes    Up to 10 billion possible product configurations per model - Using the Bentley configurator ensures an i more >>
The African Association of Automotive Manufacturers (AAAM) applauds the launch of the AfCFTA
07.01.2021
The Africa Continental Free Trade Agreement (AfCFTA) which was finalised at the virtual African Union Summit in December, is an important milestone for the realization of the AAAM’s vision of building a successful automotive ecosyst more >>
Kia unveils new logo and global brand slogan to ignite its bold transformation for the future
06.01.2021
    Kia celebrates its new face and slogan, declaring the brand’s future transformation       The new logo features ‘symmetry’, ‘rhythm’ and ‘rising’ elements that embody Kia&rs more >>
Hyundai Motor Group Chairman Calls Year 2021 ‘Inflection Point for Future Growth’
04.01.2021
    Chairman Euisun Chung stresses 2021 will be year of great transformation of Hyundai Motor Group into a new growth engine    Group to purse uncompromising perfection in quality and safety    The year 2021 will be a crucial more >>
SEAT - 20 reasons to believe
28.12.2020
    SEAT shows its capacity to reinvent itself in 2020 in an atypical, unexpected year    The company celebrated its 70th anniversary with the announcement of a 5 billion euro investment plan for the period 2020-2025    SEAT will look back on 2020 as the year in which it began electrifying the range w more >>
“Timo’s Discovery”: BMW works driver Timo Glock takes on a connectivity challenge.
28.12.2020
As part of a video series, BMW works driver Timo Glock (GER) takes his viewers on a discovery tour through numerous exciting areas of activity and projects within the BMW Group. ‘Timo’s Discovery’ offers exclusive looks behind the scenes. In episode 3, Glock takes on a challenge where he learns all about the connectivity features in the latest generation. more >>
Polestar reflects on 2020 as a year of opportunity and growth
22.12.2020
    Polestar operational in ten global markets with 40 spaces now open       Polestar 2 successfully launched with extremely positive press reception and customer deliveries in all markets more >>
CALLUM creates a Christmas special with zirconia ceramic 3D printed car bauble
22.12.2020
Thousands of inkjet nozzles simultaneously jet millions of ultrafine drops to create unique Christmas tree decoration, pointing to further uses of the technology in the car   Christmas might typically be a time for long-held traditions but in 2020, more >>
Acura Now Offers Non-Certified Used-Vehicle Inventory Online
21.12.2020
    Enhanced AcuraCertified.com now features Acura used-vehicle options    Upgraded sales portal makes the Acura used-vehicle shopping experience more streamlined, especially for first-time and younger buyers entering premium segment more >>
Aston Martin announces new partnership with Semler Premium Sweden
21.12.2020
    Aston Martin to open new dealership in Stockholm in February 2021       Aston Martin’s first SUV, the DBX enters the Swedish market    Semler Premium expand Swedish more >>
Bentley sleighs the competition with “The Reindeer Eight”
20.12.2020
    World famous celebrity commissions festive edition of the new Flying Spur V8 from Bentley Mulliner    542 bhp (550 PS) a significant upgrade for the customer, more used to 8 brp (Brake Reindeer Power)   more >>
Ford Christmas Pick-up for the Animals of ZSL Whipsnade
20.12.2020
Christmas has come early for the animals at ZSL Whipsnade Zoo, which has taken delivery of two Ford Ranger Raptors.The tiger-liveried Raptors are being put to good use across the UK’s largest zoo, tasked with feeding some of its 3,500 animals, many of which are Endangered or more >>
BMW launches company car driver loyalty scheme pilot.
20.12.2020
• BMW launches UK’s first corporate customer loyalty scheme: Inside Edge • Designed to improve BMW driver’s life on the go and at home • Full programme will launch in Q1 2021 and will be open to anyone who drives a BMW through their employer. more >>
Polaris proud to support The Grand Tour
20.12.2020
Amazon Prime Video’s The Grand Tour, hosted by Jeremy Clarkson, Richard Hammond and James May, is one of the most popular motoring TV shows worldwide. Broadcasted throughout more than 240 territories worldwide, this series of specials sees the team take on expeditions across some of the most remote and exotic parts of the world. more >>
Porsche Driving thoughts: increasing inclusivity in motorsport
20.12.2020
Porsche ‘Driving thoughts’ series, racing driver Nathalie McGloin explains why disability shouldn’t be an obstacle to hitting the track – and how she is breaking down the barriersIn a handful of years Nathalie McGloin has risen from trackday enthusiast to one of the most influential figures in contemporary motorsport. Her story is more >>
Ford Wildlife Foundation Sponsors EWT Team in 2020 Rhino Peak Challenge
18.12.2020
•    Ford Wildlife Foundation contributed R66 000 to the Endangered Wildlife Trust (EWT) team’s Rhino Peak Challenge fundraising campaign•    Three teams of 12 participants each ascended the 3 000m high Rhino Peak in the Southern Drakensberg in extreme weather to raise funds for projects related to rhino, vulture and crane more >>
Lincoln Expands Sleek, Monochromatic-Inspired Package to 2021 Navigator Black Label Edition
18.12.2020
    The Lincoln Motor Company offers a new way for clients to personalize their vehicle with the first Black Label Special Edition Package, debuting on the 2021 Navigator    The Black Label package includes unique details suc more >>
SEAT: Despite everything, the year when we kept moving
17.12.2020
    2020, a year that will go down in history and in which the 15,000 employees of SEAT have given their best    The arrival of the new Leon e-HYBRID, the CUPRA Formentor and the inauguration of CASA SEAT are examples of inte more >>
Hyundai Motor Group Renews Its Website to Introduce Future Technology Leadership
17.12.2020
    Hyundai Motor Group Tech’ website enables customers to explore the Group’s future technology and gain insights about its vision for the future of mobility    Site contents include key technologies such as Mobility Device, Mobility Service, Essential Performance, Electrification, Fuel Cell, Convergence and others more >>
Porsche rolls out online car sales in Europe
17.12.2020
Vehicle purchase at any time and from anywhereMore and more Porsche fans can now make their dream of owning their sports car come true right from their sofa. After a successful start in Germany in October 2019, the online sales channel has recently been launched in eight further European countries. Customers in Spain, Portugal, Switzerland, Italy, France as we more >>
2021 Ford Trends Report Finds Consumers Resilient and Adaptive Amid the Pandemic
15.12.2020
    Ninth annual Looking Further with Ford Trends Report explores how consumers are adapting to life during a pandemic. While 69% of adults globally say they feel overwhelmed by the changes taking place in the world, when asked how well they have adapted to the changes during the pandemic, 47% say it has been “easier than I imagined.” more >>
2001-2021 copyright automobilsport.com