(RTTNews) – Groupe Renault increased its cost-savings target and plans to reduce vehicle productions. The company will focus on electric vehicles.
Groupe Renault’s Chief Executive Officer, Luca de Meo, presented a new strategic plan “Renaulution”. He said the plan will ensure the group’s sustainable profitability while keeping on track with its Zero CO2 footprint commitment in Europe by 2050.
The CEO said the company will no longer measure its performance on market shares and sales but on profitability, cash generation and investment effectiveness. The company’s efforts will strengthen group’s resilience and lower its break-even point by 30% by 2023.
The CEO also stated that the company will move from a car company working with tech to a tech company working with cars, making at least 20% of its revenues from services, data and energy trading by 2030.
Renault now aims to save 2.5 billion euros by 2023, compared to the prior target of more than 2.0 billion euros. It also aims to save 3 billion euros by 2025.
The company targets to reach more than 3% group operating margin and lower investments to about 8% of revenues by 2023. The group aims for at least 5% group operating margin by 2025.
The company plans to reduce vehicle productions to 3.1 million units in 2025 from 4 million units in 2019.
Meo noted that new model will create a rebalanced and more profitable product portfolio with 24 launches by 2025 – half of them in C/D segments – and at least 10 full electric vehicles or Evs.
According to the company, Mobilize, Beyond automotive business unit aims at developing new profit pools from data, mobility and energy-related services for the benefit of vehicle users and to generate more than 20% of group revenues by 2030.