Automotive giant Groupe Renault has previewed its transition from a car company working with tech to a tech company working with cars.
This week the company lifted the veil on its next five years as it gave industry a glimpse beyond 2025 and launched ‘Nouvelle Vague’ (French for New Wave) as part of its plans to become a clean energy brand embracing the changes in the automotive market.
The strategy is based on leveraging the current Group’s industrial assets and electric leadership in Europe, as it moves from volumes to value.
Renault will sustain its leadership in the energy transition through electrified & hydrogen solution, offering what it describes as the greenest mix in Europe by 2025.
As for technology, Renault will leverage the “Software République”, an open ecosystem dedicated to software, data, cybersecurity and microelectronics. This will fuel the Renault line-up with connected services.
Value will come from a better mix distribution in favor of the C-segment or wagon type SUVs, the development of cutting-edge technologies and new lifecycle business opportunities.
A newly created Dacia-Lada business unit, is anticipated to boost the Group’s efficiency and competitiveness, while going beyond its perimeter in terms of products.
Part of this was a presentation unveiling the Dacia Bigster Concept, a roomy, robust 4.6 metre SUV described as having no more, no less than the essential.
By 2023, the Group aims to reach more than 3 per cent group operating margin, budgeted at $4.6 billion of cumulative automotive operational free cash flow(2021-23) and lower investments (R&D and capex) to about 8 per cent of revenues.
In 2025, the Group plans on having at least a 5 per cent operating margin.
The Renaulution plan will ensure the Group’s sustainable profitability while keeping on track with its Zero Co2 footprint commitment in Europe by 2050.
According to Luca de Meo, CEO Groupe Renault, Nouvelle Vague is about more than just turnaround, but rather a profound transformation of its business model.
“We’ve set steady, healthy foundations for our performance,” he said.
“We’ve streamlined our operations starting with engineering, adjusting our size when required, reallocating our resources in high-potential products and technologies. This boosted efficiency will fuel our future line-up: tech-infused, electrified and competitive. And this will feed our brands’ strength, each with their own clear, differentiated territories; responsible for their profitability and customer satisfaction.
“We’ll move from a car company working with tech to a tech company working with cars, making at least 20 per cent of its revenues from services, data and energy trading by 2030.”
Challenging leaders on the hybrid markets through its E-TECH technology, Renault said it would sustain its leadership on the electric market with new families of products based on its two dedicated electric platforms CMF-EV and CMF-B EV. The brand will also offer market-ready, end-to-end hydrogen solutions for LCVs.
By 2025 it will have launched 14 models (seven electric and seven C/D segment vehicles) with the ambition to have upper segments accounting for 45 per cent of sales by the same year.
It was a busy week at Renault Group with the company unveiling new brand Mobilize and its EZ-1 Prototype, a purpose-designed vehicle for shared urban mobility.
Targeting the mobility market, Mobilize offers flexible mobility services for people and goods, adapted to the evolving expectations of customers, corporates, and municipalities.
The brand will look to capitalise on Groupe Renault’s expertise in vehicle design and manufacturing, and EV-leadership while benefiting from dedicated engineering and design teams that will propose a range of purpose-designed vehicles.
Intended for heavy use, modular, robust and 100 per cent electric, they will fulfil the most critical needs of new mobility: car sharing, ride-hailing, last mile delivery and on-demand transit.
Renault also announced the newly created Alpine entity it describes as a ‘new generation’ automotive brand aimed at discerning, passionate early adopters
Current activities of Alpine cars, Renault Sport Cars and Renault Sport Racing will be united as one entity under the Alpine brand. It expects to receive considerable media exposure from Formula One.