Renault Group

Renaulution strategic plan: agenda and first outcomes

With the Renaulution plan launched in 2021, Renault Group has transformed its strategy, moving away from volumes and on to value. Ahead of schedule, the Group has already opened the third chapter of this plan, called Revolution.

 

 

 

In January 2021, the Group launched its Renaulution strategic plan, with three phases launched in parallel: "Resurrection", "Renovation" and "Revolution". The main objective is to restore competitiveness. On the financial side, the Group has adopted strict cost control. The internal organization has also been reviewed, while seeking to improve the efficiency of functional divisions. Partnerships within the Alliance have been strengthened. And a new, more competitive, profitable and sustainable range of vehicles has gradually been unveiled around four strong brands: Renault, Dacia, Alpine and Mobilize. Here is a look at the objectives of the Renaulution plan, as announced in 2021.

New financial objectives

Commitments and ambitions based on current known emission standards

(1) 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.
(2) ROCE= Auto Operating Profit (incl. AVTOVAZ) * (1- average tax rate) / (PP&E + intangible assets + financial assets - investments in RCI/Nissan/ Daimler + WCR). 

A new way of working
to better serve competitiveness

We have rethought the way we work to make it simpler, clearer, more fluid. 

In this new organization, the brands are in the driver’s seat. Each brand is clearly distinguishable, they are all focused on clients and markets, and are masters of their own profitability.

Cross-cutting functional divisions, with Engineering leading the charge, work closely with the brands and are responsible for the time-to-market calendar, competitiveness, costs, and development timeline.

The Alliance with Nissan Mitsubishi Motors plays a pivotal role in focusing efforts on high-impact projects.

More efficient functional divisions

A key driver behind the Renaulution plan is the boost in efficiency for functional divisions – responsible for cost and performance.

Engineering

  • Rationalization of platforms from 6 to 3 (with 80% of Group volumes (1) based on three Alliance platforms) and powertrains (2) from 2025 (from 8 to 4 families)
  • Time taken to develop a car reduced by an entire year
  • Industry leader for electric vehicles and connected services
(1) Perimeter: passenger cars
(2) Perimeter: Europe

Manufacturing (3)

  • Cost competitiveness4 increased by +20 points by 2023, 2024, 2025
  • Capacity reduced to 3.1 million units by 2025
  • Plant utilization rate increased to 120% from 2025
(3) Harbour standards
(4) Cars sold in Europe

Quality

  • Totally rethought business model and production approach
  • More sustainable vehicles, illustrated by the "one million kilometers" project
  • Increase residual value for vehicles

Procurement

  • Exceptional effort made to control variable costs
  • Renewed supplier-side efficiency

Take advantage of the group and alliance’s technological expertise

A new range
that is more competitive, profitable, and balanced

Our product-driven offensive will be as follows: 

  • We are going to win back lost ground in the C and D segments with a total of 11 new electric/hybrid models, bringing the contribution margin* on variable costs of mid-size cars to Group revenue from only 15% in 2019 to 40% in 2025. 
  • The offensive will be led at the same time as work to maintain our position as leader in segments A and B with the release of five new electric/hybrid models.
  • We will consolidate our position in the LCV segment, with 6 models, 3 of which are all-electric.

*In €, Group excluding AVTOVAZ

The Renaulution plan will ensure the Group’s sustainable profitability while keeping on track with its Zero CO2 footprint commitment in Europe by 2040.

4 brands
4 propositions

The "nouvelle vague" bringing modernity to the european automotive

With Renault Group’s strategic plan ‘Renaulution’, the Renault brand moves into a new era and launches its own “Nouvelle Vague”, bringing modernity to the European automotive by turning into a tech, service and clean energy brand.

At Renault, we embrace the waves of disruption and create our own ‘Nouvelle Vague’. It’s about bringing modernity to the automotive industry. And this vision of modernity, we anchor it in France. Because as a brand, we know our soul and our strength lie in our origins.

Luca de Meo
CEO Renault Group
  • The Renault brand embraces the changes from the automotive market with its “Nouvelle Vague”.
  • Renault will bring modernity in the automotive industry by becoming a tech, service and clean energy brand, leader in the energy transition.
  • Value will come from a better mix distribution in favor of the C-segment, the development of cutting-edge technologies and new lifecycle business opportunities.
  • 14 models launched by 2025, including 7 electric vehicles and 7 in C/D segments.
  • Renault 5 Prototype shows what Renaulution means when it comes to product.
READ MORE

Redefining what’s essential by breaking new ground

Dacia is starting a new chapter of its success history. As part of its quest to redefine the essence of affordable cars, it will venture into new territories across Europe and a new segment, throwing out the rule book on the way.

dacia bigster

Dacia will stay Dacia, always offering a trustworthy, authentic, best value-for money proposition to smart buyers. We’ll have everything we need to bring the brands to higher lands .

Denis Le Vot
EVP, CEO, Dacia brands

test

  • A brand that is essential, never losing sight its customers’ needs and offering fairly-priced models.
  • An outdoorsy touch of coolness, feeding into customers’ thirst for freedom and authenticity.
  • A new approach to manufacturing materials that is in line with changing automotive consumer habits.
  • A central, Alliance-based, modular platform for more competitivity and modernity.
  • A range taken up to higher lands with an upcoming C-segment SUV as heralded by the Bigster Concept.
READ MORE

A brand at the forefront of innovation with exclusive sport cars

The Alpine brand shifts up a gear. Proud of its legacy, though not one for nostalgia, the Alpine brand is gearing up to branch out into new areas, like Formula 1, and mount a ‘dream garage’ line-up of all-electric sport cars.

The new Alpine entity takes three brands with separate assets and areas of excellence to turn them into an empowered, fully-fledged business. We’ll be on the tracks and on the roads, authentic and high-tech, disruptive and passionate.

Laurent Rossi
Managing Director of the Alpine brand
  • A new entity combining high-tech excellence and passion for racing to develop high-performance, authentic and exclusive sportscars.
  • A brand rooted in its legacy though focused on the future, bringing together workstreams from Renault Sport Cars and Renault Sport Racing.
  • Spearheaded by racing, with Formula 1 as the brand’s key strategic diver.
  • The shared strength of Renault Group and the Alliance in developing high tech solutions, a global network, and purpose-built electrical platforms.
  • A new range of all-electric sport cars, unlike any other, including an all-new version of the A110 Berlinette developed with Lotus.
READ MORE

A brand dedicated to mobility and energy services

A recent addition to the Renault Group family, the Mobilize brand will carry the company beyond the bounds of the automotive industry, harnessing new growth drivers from the mobility and energy services and data management markets.

Our goal is to maximize car usage with simplified, more sustainable and accessible mobility journeys for people and goods, while reducing the environmental impact.

Clotilde Delbos
CEO, Mobilize Brand
  • An expert brand that provides flexible mobility solutions (adapted services and vehicles) and promotes a sustainable energy ecosystem.
  • A commitment to promote carbon neutrality, the circular economy, and extending vehicle life cycle.
  • A unique combination of hardware and software, brand-specific vehicles and advanced services, all in open ecosystems.
  • A new service-based business that, come 2030, aims at accounting for more than 20% of turnover for Renault Group.
  • The EZ-1 Prototype - paving the way for new shared mobility, it embodies the Mobilize brand identity and values.
TOWARDS LASTING PERFORMANCE
Four brands