Skip To Main Content
Loading data...
Accessibility

Resurrection

2021-2022, two years to adapt and build resilience

Following historic losses and multiple crises, the Resurrection phase focused on margin recovery and cash generation. The main objective was to restore the company's competitive edge.

New financial targets

From a financial standpoint, the Group applied strict discipline on costs.

Renault Group achieved the profitability target initially set for 2025 in 2022, generating €2.1 billion in free cash flow in 2022, or €3 billion in cumulative free cash flow between 2021 and 2022. Renault Group generated €3 billion in free cash flow in 2023. R&D Capex remained below 8% of revenue.
The strategic shift from volume to value kick-started the fastest recovery in recent automotive history.

A new approach to boost competitive performance

Renault Group has reviewed its internal organisation, opting for a simpler, clearer, more streamlined approach that also boosts the efficiency of each business line. It is now the brands that are in the driver’s seat. Clearly differentiated and with their own identity, the brands are customer- and market- oriented with a focus on profitability management.
Cross-cutting functions, primarily engineering, are directly linked to the brands. These functions are responsible for time-to-market, competitive performance, costs and development times.

More efficient functions

One of the key aims of the Renaulution plan is to accelerate the efficiency of the functions responsible for cost and performance

Engineering:

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

* Perimeter: passenger cars
** Perimeter: Europe

Manufacturing*:

  • Cost competitiveness** 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

* Harbour standards
* 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