Groupe Renault has unveiled a major new strategic plan, the ‘Renaulution’ designed to spark the firm’s recovery and future growth, which will include a huge expansion in Renault’s electric vehicle range, an expansion of budget brand Dacia’s line-up – and the reinvention of Alpine as a fully electric performance brand.

The strategic plan has been devised by new company boss Luca de Meo, who has called it a “profound transformation” of Renault’s business model, with Group Renault’s focus shifting from maximising volume to increasing the value – ands profitability – of vehicles.

The Renaulution builds on the group’s ongoing recovery and growth plan, and will feature three phases. The ‘resurrection’ phase will run until 2023, and will focus on increasing the firm’s margins and cash generation while the ‘renovation’ phase, which runs until 2025, will include a focus on renewing the line-ups of the Group’s key brands, in order to boost profitability. 

Once those goals are achieved, the ‘revolution’ phase will run from 2025 onwards, and will focus on switching the firm’s business model to a focus on “tech, energy and mobility”, with a focus on electrification and new mobility schemes.

Group Renault says that, under the new plan, it will shift its focus from maximising its market share and sales to profitability, the ability to generate revenue and its investment effectiveness, with the goal of reducing investments in research and capital expenditure and boosting its operating margin by 2025.

De Meo noted that half of Groupe Renault’s profits came from five European countries, and that almost half of its line-up was made up of local market vehicles. He also noted that, in some markets, the Dacia and Renault brands had become too close.

The new plan will involve Groupe Renault focusing its products by switching from six to three platforms, with 80% of its volume built on the new Alliance platforms, and switching from eight powertrain families to four. All of the brand’s future models based on existing platforms will be launched within the next three years.

At present, the firm offers three petrol, one EV, one hybrid and three diesel powertrain families, but in the new plan by 2025 it will focus on one petrol powertrain that can allow hybrids, one electric powertrain, one hydrogen powertrain and one diesel unit, with the latter for light commercial vehicles (LCVs) only.

The company’s focus on profitability rather than volume will involve reducing its manufacturing output from four million units in 2019 to 3.1 million by 2025.

The new Renaulution plan involves a new strategy for each of Groupe Renault’s three key brands:

Renault

Under the plan, de Meo wants the Renault brand to become a leader in electrification by 2025, including establishing an ‘electro pole’, likely in Northern France, as the group’s key EV manufacturing site. It will also launch a new hydrogen joint venture with American firm Plug Power, with the aim of gaining a 30% share in the European light commercial fuel cell vehicle market. 



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