Renault has taken the wraps off 'Renaulution', its plan to "restore Groupe Renault's competitiveness", consolidate its product portfolio and boost profit worldwide.
Whereas Renault's existing product roadmap saw it chase volumes and outright sales, the new plan – created under new CEO Luca de Meo, who arrived from Seat in early 2020 – will see the group streamline its model range and development processes worldwide, in an effort to increase per-vehicle profits.
The plan has been split into three stages: Resurrection (up to 2023, focusing on increasing profit margin), Renovation (up to 2025, which will "see renewed and enriched line-ups") and Revolution (2025 onwards, pivoting the business to new technology, forms of mobility, and energy sources).
Headlining the plan will be the streamlining of Groupe Renault's product portfolio and vehicle platforms.
By 2023, the brand plans to slim the number of vehicle architectures in use globally from six to three, focusing on the CMF-B, CMF-C/D and CMF-EV platforms, with the B and EV architectures supporting all-electric powertrains.
The number of powertrain types will be cut from eight to four, comprising petrol-electric hybrid, diesel, hydrogen fuel-cell and pure-electric. Just one family of petrol engines will be offered, down from four.
Leading Renault’s growth plans are an array of markets and regions earmarked by the company to be more profitable, namely India, Korea and Latin America, along with further planned growth in previously-successful regions for the brand, including Turkey, Romania, Spain and Morocco.
By 2025, the French carmaker plans to build 3.1 million cars annually, despite having the manufacturing capacity for up to four million – evidence of the brand's focus on profit over outright volume.
24 new models will be introduced by 2025, across five brands: Renault, Dacia, Alpine, Lada and Mobilize (more on the specifics of each marque later). Half of those models will fit into the C (small car) and D (mid-size) segments in Europe, with 10 of the 24 to employ all-electric power.
All models already in development on existing platforms excluded from the aforementioned trio will be launched within the next three years.
"The Renaulution is about moving the whole company from volumes to value. More than a turnaround, it is a profound transformation of our business model. We’ve set steady, healthy foundations for our performance. We’ve streamlined our operations starting with engineering, adjusting our size when required, reallocating our resources in high-potential products and technologies", said Groupe Renault CEO Luca de Meo.
"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% of its revenues from services, data and energy trading by 2030", he added.
See below for an in-depth breakdown of what's in store for each of Groupe Renault's new and existing marques: Renault, Alpine, Dacia, Lada and Mobilize.
Luca de Meo's plan will see Renault become a "leader" in electrification by 2025, headlined by the establishment of the "Electro pole", a large manufacturing site dedicated to producing all-electric vehicles, likely located in Northern France.
14 of the 24 new models due to be introduced within the wider Group by 2025 will be Renaults, half of which will be all-electric, which the brand claims will attract higher profit margins than their internal-combustion-engined counterparts.
A different set of seven vehicles will reportedly fit into the aforementioned C and D segments, with the hybrid options set to be offered with these models expected to account for 35 per cent of total Renault sales by 2025.
A new joint venture with American company Plug Power will aim to push Renault to 30 per cent market share in the hydrogen fuel cell-powered, light commercial vehicle market in Europe, while renewed focus will be placed on profitable market segments in Latin America and Russia.
Also in the plan is the 'Software République', a partnership with a range of technology and miscellaneous companies to collaborate on an array of software, artificial intelligence and general technology projects for future Groupe Renault vehicles.
A new infotainment system, dubbed My Link, will be introduced in 2022, featuring built-in Google services and artificial intelligence-based functions.
If you thought the changes to the master Renault brand were comprehensive, it's time to familiarise yourself with Groupe Renault and Luca de Meo's plans for its reborn sports car brand, Alpine.
The Alpine moniker will be repositioned to combine the existing Alpine sports car brand, Renault Sport Cars and Renault Sport's motorsport activities (currently operated under the Renault Sport Racing name) under one roof.
In doing so, it will shift to a road-car product plan consisting entirely of electric vehicles, with three models to launch in the coming years (teased above).
The new-model offensive will be led by a new zero-emissions sports car co-developed with British specialist Lotus, which will serve as the replacement for the current, petrol-powered A110. For more details on that project, read our full story here.
Given Alpine's focus on electric vehicles, the rebranding of Renault Sport to Alpine, and the lack of a C-segment small hatch in the performance brand's plans, the future of the current Renault Megane RS – powered by a 1.8-litre turbocharged four-cylinder petrol engine – appears to be in doubt.
Renault's participation in a variety of motorsport activities will also be brought under Alpine's wing, headlined by the newly-renamed Alpine Formula One Team. An endurance racing debut for Alpine has been locked in for 2021, with an entry into the all-electric Formula E series also rumoured to be on the cards.
With its all-new product portfolio in the pipeline, Alpine has set a clear goal for its future: become profitable by 2025.
Dacia and Lada
Groupe Renault's 'affordable' brands, Romania's Dacia and Russia's Lada, are also in line for a major shake-up in the coming years.
Headlining the changes will be the introduction of a new "super-efficient" business model, which will see Dacia and Lada 'combined' as one business entity – though each brand will continue to market their own vehicles, with distinct exterior and interior styling.
Four platforms will be simplified to just one – the light-sized CMF-B architecture – and 18 body types will be cut to 11, with total production intended to top 1.1 million.
Dacia will launch three new models by 2025 – in addition to the recently-unveiled Sandero, Logan and Spring Electric – including one C-segment vehicle, expected to take the shape of a production version of the Bigster Concept (above) unveiled alongside the business plan announcement.
Lada will host the debuts of four new models, including an all-new replacement for the iconic Niva off-road SUV in 2024 (bottom), and a C-segment SUV of its own in 2025.
A revival of a range of "iconic models" has also been promised, as has the introduction of natural gas and E-Tech hybrid powertrains to lower fleet CO2 emissions.
A new brand for Groupe Renault, Mobilize will "developing new profit pools from data, mobility and energy-related services", and will reportedly account for more than 20 per cent of the group's revenue by 2030.
Mobilize will introduce four specially-designed vehicles: one for ride-sharing, one for last-mile delivery, and two for car-sharing services (previewed by the EZ-1 Prototype, pictured above).
"Innovative" financing solutions will also be offered by the new brand, as will a "dedicated data, services and software platform".
Stay tuned to CarAdvice for more details of Renault's future as the fruits of its plans are unveiled in the years to come.