Renaulution: everything about our strategic plan

Renaulution: an initial assessment

The Renaulution is already delivering tangible results: the company is more profitable, more competitive and more efficient, its brands are shining brighter, and it is revamping its product line-up.

The Resurrection phase was completed ahead of schedule. The Group is profitable again:

• We will reach our 2025 profitability target in 2022.

• We will generate €2.7 billion by end-2022 and are well on track to meet our €3 billion target in 2023.

• And we have set our R&D spend above 8%.

The Renovation phase has started and is standing on firm ground.

The Group is now organised by brand, and this new configuration is producing results: Renault, Dacia and Alpine are now strong independent business units, and the Group has created Mobilize to take on the new challenges facing mobility. This reorganisation was the first step to streamline the Group around consumers’ needs and to transfer the focus to performance.

At the same time, we will market the best line-up in these past 30 years, with 25 launches from 2022 to 2025. This new range is designed to position the Group on the most profitable market segments while it aims for the smallest environmental footprint in its sector.

Now we are embarking on the Revolution phase: our full transformation to tap into all the growth opportunities arising from the automotive sector’s reshuffle. Our ambition is to become a Next Gen automotive company.

Now, Revolution

New playing fields

The EV & digital revolutions, the shift from selling cars to selling mobility services, and the urge to make our industry sustainable, are radically reshaping the automotive sector.

All these shakeups are opening doors into new playing fields for Renault Group.

Specialisation and horizontal integration

To turn these challenges into growth opportunities, the Group is speeding up its transformation to excel in all the new value chains – technology, industry, services, circular economy and so forth.

To do this, we are setting up specialist teams. The goal is to concentrate their talents, expertise and energy in each field, and thereby move into the lead.

We team up, whenever we can, with the best players in the field to invest together, build together, expand the possibilities for innovation and share risks.

In other words, we are building open ecosystems to take on growing portions of these new value chains.

5 value chains, 5 focused businesses

We know that our organisation needs nothing short of a full transformation. And it has started.

It involves creating two new entities (Ampere and Power) alongside the three existing ones (Alpine, Mobilize and The Future Is NEUTRAL). They are all centred around intrinsically profitable business operations, open to outside investment and built around a consistent array of technologies. They all have autonomous governance bodies and clear objectives. They are:

• Power, the traditional core business of Renault Group will continue to develop innovative low emissions ICE & hybrid vehicles under the Renault, Dacia and Renault LCV brands;
• Ampere, the first EV & Software pure player born from an OEM disruption;
• Alpine, a high-end zero-emission global brand with a racing pedigree;
• Mobilize, built around a leading financial services company to enter the market of new mobility, energy and data-based services;
• The Future Is NEUTRAL, the first 360° circular economy company in the automotive industry from closed loop in materials to battery recycling.

Renault Group, a team of teams

Our transformation has deep roots and a solid trunk, Renault Group, which will continue to play this role in the new system.

It is a large technological and industrial group, building a portfolio of standard-setting brands and business units in complementary fields – combustion and hybrid powertrains, electricity and software, mobility services, the circular economy – with a view to becoming a new-generation automotive company.

We want this entirely digital company to be highly efficient and fully focused on the ventures that make the most strategic sense and create the most value:

• Setting the medium- and long-term strategic course, and the ESG trajectory;
• Supporting all the entities and business;
• Delivering economies of scale and synergies;
• Encouraging innovation and transforming skills;
• Ensuring consistency across the board, including the Alliance.

Our five focused businesses

LCV business unit: Revolution for the Pros

Renault Group’s LCV business relies on solid foundations with over 5 million vehicles in European car park, an ecosystem of over 600 dedicated Pro+ dealers, 4 plants and the most up-to-date line-up by 2026.

Renault LCV will develop two game changing projects to address a dynamic and changing market:

• HYVIA, Renault Group’s joint venture with Plug revolving around hydrogen mobility, pooling the first’s engineering and industrial assets with the second’s expertise in hydrogen. Hyvia aims for 30% of the hydrogen-powered LCV market by 2030, in Europe and a cumulated order intake of €1 billion by 2026.
• Also in 2026, a new generation of LCVs, FlexEVan, will appear. FlexEVan will be compact for urban use thanks to a specially designed EV platform. It will use the technology developed within Ampere for software-designed vehicles. It will be the first vehicle to benefit from the application of the software-defined vehicle technology at Renault Group, allowing notably for real-time, end-to-end operations monitoring and data-driven fleet management. FlexEVan will reduce the total lifecycle cost of usage for the clients by at least 30%, i.e. more than the price of the van. To support the development of FlexEVan, Renault Group intends to create Flexis, a joint venture, to share development costs and maximise customer coverage.

Ampere will develop, manufacture and sell all-electric cars packed with cutting-edge software technology, under the Renault brand. It will bring the best of both worlds: know-how and assets from Renault Group with the focus and agility of an EV pure player.

Based in France, Ampere will be a full-fledged OEM with around 10,000 employees. As a tech company, Ampere will drive innovation with 3,500 engineers, half of them specialized in software.

Renault (Europe), all-electric

Ampere will be the key to boost the Renault brand and usher it into the new era of electric and connected vehicles.

It will provide the technology and organisation to turn Renault into an all-electric brand in Europe by 2030, and support Renault Group’s aim to achieve carbon neutrality in Europe by 2040 and worldwide by 2050.

Ampere will tender a revamped customer journey “tailor-made” for electro-mobility, and its first line-up will have 6 electric vehicle models: the B-segment with the new Renault 5 Electric and Renault 4 Electric, and the C-segment with Megane E-tech Electric, Scénic Electric and 2 other vehicles to be revealed. 

Renault Group will remain Ampere’s majority shareholder.

After two years into the Renaulution plan, the Alpine brand is in a great place:

• Stepping into Formula 1 has boosted brand recognition;
• Its sales have doubled.

We have breathed new life into the brand.

Moving forward, Alpine is aiming to:

• Offer an all-electric line-up starting in 2026;
• Grow internationally, principally with its five upcoming cars: the new A110 and models in the B, C, D and E segments.

Alpine is striving for profitable and enduring growth with a one-of-a-kind business model: it operates as a standalone startup.

Its organisation is therefore agile, and it has its own in-house technological capabilities:

• Alpine has all the skills to develop its chassis as well as hybrid and electric power units;
• It has its own plant, the Manufacture Alpine Dieppe Jean Rédélé, which has unrivalled expertise in best-in-class highly customised vehicles.

Meanwhile, the Alpine F1 teams are focused on their goal: to be in a position to win the Formula 1 world title by 2026.

New mobility services are one of the main opportunities arising from the shakeup in the automotive sector.

The European market for financing, mobility and energy services is expected to double in value between 2022 and 2030. Mobilize is tasked with tapping into these opportunities.

The brand combines financial services, mobility services, energy services and data-based services in a one-stop shop to meet the needs of private customers, fleet operators and mobility companies.

The brand can count on a number of assets:

• Mobilize Financial Services is one of the best financial services providers on the market with 4 million of customers;
• A comprehensive and exclusive vehicle line-up;
• Support from the Software Republique to take on the challenges surrounding new kinds of mobility;
• The Group’s network, which will enable it to bundle maintenance fast tracks into its range of mobility services;
• Refactory, to give the vehicles more than one life and thereby maximise revenue throughout their life cycle.

We see shrinking our environmental footprint as a lever to enhance performance in everything we do, everywhere.

This is what The Future Is NEUTRAL, the first company spanning the full circular economy value chain in the automotive sector, is all about: it helps all players in the industry move closer to resource neutrality by using more recycled materials to make new vehicles.

This new entity provides closed-loop recycling solutions at every stage in a vehicle’s life, across sourcing parts and raw materials to production and on to use and the end of the vehicle’s life.

From around 50% of value chain coverage today, The Future Is NEUTRAL aims to reach above 90% by 2030. It is set to become the European leader at industrial scale in the closed-loop automotive circular economy. It will service Renault Group as a well as the entire industry. In order to accelerate its development and strengthen its leadership, The Future Is NEUTRAL is opening up a minority of its capital to outside investors with the objective of to co-finance investments of around €500 million until 2030.