4 brands
4 propositions
FROM VOLUME TO CREATING VALUE
‘Renaulution’: Renault Group’s recently unveiled strategy is an ambitious transformative program, moving away from volumes and on to value.
A plan structured in 3 phases that are launched in parallel, which will restore competitiveness by:
- Improving the efficiency of functional divisions thanks to strict cost control;
- Taking advantage of Renault Group’s industrial strengths and position as leader in electrics throughout Europe;
- Drawing on the Alliance’s technological expertise to boost efficiency;
- Exploring even further into the world of data, mobility and energy services,
- Driving profitability through 4 differentiated empowered brand business units, customers and markets oriented.
The Renaulution is about moving the whole company from volumes to value. We will feed our brands’ strength, each with their own clear, differentiated territories. We’ll move from a car company working with tech to a tech company working with cars.
CEO Renault Group
TOWARDS LASTING PERFORMANCE
RESURRECTION
THROUGH 2023
Phase one: become competitive once again by reducing costs and generating profit.
RENOVATION
THROUGH 2025
Phase 2: renew and enrich our line-ups, feeding brand’s profitability.
REVOLUTION
AS OF 2025
Phase three: redirect our business model towards technology, energy, and mobility, to define our position as precursor in the new-mobility value chain.
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
(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
(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
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 2050.
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.
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.
The oldest and most emblematic brand of the Group, Renault is entering a new era with the strategic plan ‘Renaulution’. Building on more than 120 years of inclusive innovation and a legacy made of numerous iconic models, Renault embraces the changes from the automotive market. With its “Nouvelle Vague”, the brand will bring modernity in the automotive industry by becoming a tech, service and clean energy brand.
Renault will evolve into:
- a Tech brand, with an ecosystem called “Software République” that will allow Renault, other founding members and future partners to develop joined expertise, build European know-how and defend our sovereignty in key technologies from big data to electronics. It will also allow Renault to equip its vehicles with leading artificial intelligence and cyber-security systems.
- a Service brand, offering the best connectivity and high-tech services embedded natively in our vehicles. Renault will be the first carmaker to bring Google services to mass-market cars.
Further, Renault will try to break the consumerist cycle and generate value up until vehicles’ end-of-life, all thanks to its Re-Factory in Flins (France). Renault also has a clear advantage when it comes to second life and end of life of batteries. The control of these parts of the value chain has the potential to generate new business cases and value.
- a Clean Energy brand, becoming a leader of the energy transition. Challenging leaders on the hybrid markets thanks to its revolutionary E-TECH technology, Renault will sustain its leadership on the electric market with new families of products based on our two dedicated electric platforms CMF-EV and CMF-B EV. The brand will also offer market-ready, end-to-end hydrogen solutions for LCVs. The target is to reach the greenest mix on the European market.
RETURN OF A CULT CAR
In real terms, the ‘Nouvelle Vague’ will see the Renault range bolster its position as a leader in the B segment while reclaiming ground in the C segment. 14 models will be launched by 2025, including 7 electric vehicles and 7 in the upper segments, with the ultimate goal of having them account for 45% of sales by 2025.
One vehicle in the new line-up is reminiscent of one of the brand’s iconic cars, the R5. A sneak-preview of the future model came with the Renault 5 Prototype, presented at the same time as the ‘Renaulution’ strategic plan. Its role is to show that Renault will democratize the electric car in Europe with a modern approach to the popular and essential car. The Renault 5 Prototype is a cute, pin-sized, city car taking one of Renault’s timeless successes to the future with a modern, 100% electric twist. This is also evident in its body lines, flush surfaces, and some futuristic detailing. The styling elements taken from the original R5 design hide very modern features: the hood intake covers the electric charging socket, the tail lamps feature aerodynamic shutters, and the bumper fog lamps have been converted into LED day lamps.
The front and the fabric roof draw inspiration from the world of furniture, symbolizing the 'French charm' with a hint of mischief. Lastly, the French flag located in the rear-view mirrors underlines the “invented in France” aspect of the vehicle. The Renault 5 is back!
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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.
LADA too has new horizons to explore with its ambitious product plan, epitomised by the 2024 launch of its latest iteration of the iconic Niva. Like Dacia, the brand will benefit from synergies between Renault Group and the Alliance.
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 .
EVP, CEO, Dacia & LADA brands
- 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.
A driver of ‘sustainable’ automotive consumer practices, Dacia is the Renault Group brand that is redefining what is essential, offering the market’s best value for money in all segments where it is a contender. It recently lived up to expectations once again with Spring, Europe's cheapest electric city car on the market, and the New Logan, Sandero, and Sandero Stepway.
Dacia is proof that what is ‘essential’ can also be ‘modern’ and ‘cool’, a breath of fresh air for the range and an emotional beacon for the brand’s long-lasting fans and customers. The range of emotions runs deep: desire for a product, pride for having made the right choice for the right price, satisfaction in consuming differently.
Today, Dacia opens a new chapter while staying true to its customers, growing and changing just as they do. Dacia takes them to a world of adventure, carried by an ‘outdoor’ undercurrent that fulfils a deep need of escape, freedom, and authenticity.
Dacia is going to simplify and modernize its entire range thanks to the central, Alliance-based CMF-B modular platform. Through it, bigger models than the current designs will become a reality and the whole range will benefit from the best prices on the latest technological modules from Renault Group and the Alliance.
Because it doesn't make sense to give up on the very fundamentals and ‘foolproof’ business model that are behind Dacia’s success: the ‘design-to-cost’ approach whereby vehicles are designed to meet the precise needs of customers and the market; or its ability to ‘throw away the rule book’ in all instances.
The Bigster Concept show-car is a prime example: roomy, robust, meant for open air and dusty roads, exploring new horizons. It’s the very essence of a 4.6 meters SUV with no more, no less than the essential.
With 5 seats, it features simple yet modern lines that show the car has nothing to hide. They hint at the generously spacious interior, which is the best for the category. With the signature Y-shaped lighting now larger and more present, and the distinctive bodywork protectors, the overall look is assertively robust. The look is highlighted by the use of genuine materials, nothing artificial, no chrome finish or faux aluminium, but rather raw recycled plastics.
Dacia will embrace the new model to take on new horizons as of 2025 by moving onwards and upwards to C-segment vehicles; a whole new ballpark, but a game changer nonetheless. Harnessing tried-and-tested building blocks of past successes, it will remain modern and focused on simple, genuine, robust design. Future figurehead of the Dacia range, it will come in both alternative-energy and hybrid engines, meaning the brand will always be perfectly in sync with changing regulation and vehicle use.
Winning new business in Europe, in a new segment with new customers is made possible thanks to more thorough integration within Renault Group – the rationale behind the announced creation of the Dacia-LADA business unit as part of the ‘Renaulution’ strategic plan – albeit in a distinct brand environment.
New horizons for LADA
In joining the same business unit as Dacia, the LADA brand will benefit from synergies between Renault Group and the Alliance. Starting with the use of the very cost competitive and flexible CMF-B modular platform, through which the brand can optimise quality and utilise the latest available technologies in their model designs.
While maintaining its position as market leader in robust all-climate and all-weather vehicles, LADA will explore new horizons with an ambitious product plan, as shown by the latest iteration of its iconic Niva in 2024 and a new C-SUV segment model. The aim here is to not only consolidate leadership in the Russian and CIS markets, but to also ultimately export to new markets.
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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.
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.
Following its recent revival, the Alpine brand is now ready to shift up a gear as it moves on to become a new generation automotive brand, with profit targets set for 2025. Building on its legacy to better leap into the future, it is a trail blazer when it comes to sportiness on the racetrack with the Formula 1 and on the open road with its ‘dream garage’ line-up of lightweight, exclusive, and innovative all-electric models.
The A110 Berlinette, rallies, the Dieppe factory, the 24 Hours of Le Mans, ... Alpine is a recognized brand, with its own history and pedigree, a reputation built up on victories and titles. A brand that strikes a chord in the hearts of automobile enthusiasts, especially in France. Alpine, however, is not a nostalgic brand that is bogged down in the past. Forward-looking more than ever before, it is made even stronger by bringing together several existing entities within Renault Group:
- Renault Sport Cars and its team of 300 people who are masters at developing sports cars. They gave the Group iconic products such as the R5 Turbo, the Clio V6, the Megane R.S. Trophy and … the new Alpine A110.
- Renault Sport Racing, with its Formula 1 team, bringing together 1,200 people, including leading specialists in aerodynamics, mechanics, and powertrain engineers.
Alpine’s commitment to Formula 1 will kick off with the 2021 racing season and representing a unique opportunity to enhance Alpine’s branding globally: worldwide notoriety garnered from being part of the world’s leading motor sport discipline, reaching half a billion fans and drawing the who’s who of drivers.
Another growth channel is through enhanced synergies between Renault Group and the Alliance. The main example being the Dieppe plant, which is highly specialised and at the cutting edge of customisation. Not to mention cutting edge technology such as state-of-the-art platforms, a global distribution network, and the weight of the full range of financial services offered by RCI Bank and Services, that further strengthen the distribution potential of both the brand and its models.
In fact, the Alpine brand will soon have its own full range, a ‘dream garage’ made up of exclusive and futuristic sport cars: it is what dreams are made of, and these dreams come true. The new generation Alpine models will benefit greatly from Formula 1 technology and know-how. Above all, it will take a radical turn within the segment as it goes all-electric.
As brand icon, the A110 will stay in the line-up as an updated model developed in partnership with Lotus, also a lightweight sport car specialist. It will be joined by a B-segment compact sports car and a C-segment crossover, both built around the Alliance’s electrical platforms. These models will be fitted with highly efficient electric powertrains that seamlessly connect to the ‘road and network’ for an unbeatable driving experience.
Alpine’s future is electric. A brand where racing, in general, and Formula 1, as a hybridization laboratory, are at the heart of the strategy. A brand set to become a major asset for Renault Group.
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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.
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.
At a time when the automotive sector is undergoing radical change, Renault Group is harnessing Mobilize to transform the disruptive environment into sustainable profit avenues. Combining mobility and energy management services, financial services, and data management services, Mobilize goes beyond cars. The brand addresses new needs and promotes sustainable energy ecosystems, targeting customers who wish to adopt more sustainable, shared forms of mobility. Mobilize benefits from dedicated engineering, design, quality, and product development teams. By developing its own range of offers under its own brand name – vehicles included – it aims at contributing more than 20% of Renault Group turnover in 2030.
With its unique combination of hardware and software, purpose-designed vehicles and services in open ecosystems, Mobilize will offer flexible transport solutions for both people and goods, adapted to the evolving expectations of end customers, companies, cities, and regional governments. It will address concrete issues by providing new solutions that go hand in hand with traditional car purchase practices.
Its energy ecosystems and smart charging solutions will help drive the energy transition and boost electrical mobility. Used in smart islands, smart cities, or smart territories, they will help in reaching carbon neutrality.
The circular economy will, of course, be at the heart of the brand, thanks to Renault's recognised know-how in terms of EV battery lifetime management and use in second-life applications. But also with the new Re-Factory in Flins, serving as the primary support division for vehicle reconditioning and battery management. As such, Mobilize will help in extending vehicle life cycles.
Mobilize already has a strong competitive edge as it enters the mobility market. It builds on the expertise within Renault Group as vehicle designer and manufacturer and as a European leader for electric vehicles. In addition, with a potential of more than 6,000 Renault dealerships in Europe, Mobilize will be able to offer mobility solutions for use ranging from one minute to several years, in cities and towns throughout the region. Lastly, RCI Bank and Services is a privileged partner with whom Mobilize provides easy access to financial solutions and services.
The Mobilize EZ-1 Prototype is a prime example of the brand's identity as a future urban mobility solution designed for shared use. It embodies the brand's design vision: service at the heart of vehicle design. Even the commercial model is innovative: users will only pay for what they use, in terms of drive-time or mileage. The vehicle is connected: it comes with keyless access and interacts with users via their smartphone.
EZ-1 is a compact and agile electric vehicle for 2 people. Its architectural model means the vehicle is only 2.3 metres long and has a minimal footprint. Top-to-bottom glass doors give EZ-1 users an unhindered view on the surrounding urban landscape. Agile, dynamic and inclusive, it blends into the urban world. EZ- 1 Prototype features an innovative battery exchange system. This alternative to the traditional charging infrastructure means the vehicle can be used non-stop.
The future EZ-1 production model will be made according to circular economy principles, using 50% recycled materials and with a recycling capacity of 95%. Standard bearer of the brand's values, it will lead the way for a whole range of models all uniquely adapted to varying mobility needs.
Read the Renaulution presse release
Read the Renaulution presentation
Read the Renault press release
Access to Renault pictures and videos
Read the Dacia press release
Access to Dacia pictures and videos
Read the Lada press release
Read the Alpine press release
Access to Alpine pictures and videos
Read the Mobilize press release
Access to Mobilize pictures and videos
Watch the replay of the conference
