Renault announces six-year plan including electric cars and Euro 70-billion turnover

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Groupe Renault has announced a major forward looking strategy that sets its direction for the next six years into 2022. A clear goal of achieving a 70 billion Euro annual turnover with an operating margin of 7% (subject to a floor of 5% through the years of the plan) by the end of the plan has been set and to achieve that a host of directives are in place.

These include expanding the brand’s presence in Russia, China, India, Brazil and Iran to improve the worldwide presence. This will see the launch of 21 new models that include three add-ons.

In addition to this efficiencies will be built in the production process as well as in model development costs with 80% of all Renault models being built on shared platforms. The key advantage of the research and development spend of 18-billion Euro planned over the next six years will be magnified by the expanded alliance with Nissan and Mitsubishi which will see the launch of key vehicle initiatives. this includes making all vehicles sold in core markets 1005 connected as well launching 15 autonomous drive models.

The plan also factors in the growth of automated and robotic drive cars, with connected and app based taxi services including remote robo-taxi hailing. This will be in addition to expanding Renault’s current electric vehicle fleet to 8 pure electric vehicle models and 12 electrified models (hybrids).

carlos ghosn
Carlos Ghosn

Renault Chairman and CEO Carlos Ghosn said: “Groupe Renault is now a healthy, profitable, global company looking confidently ahead. Drive the Future is about delivering strong, sustainable growth benefiting from investments in key regions and products, leveraging Alliance resources and technologies, and increasing our cost competitiveness. Supported by the men and women of Renault, this new plan will unleash our full potential to innovate and grow in a rapidly-changing industry.”

In terms of numbers, Renault expects to grow to the 5 million vehicle mark by the end of the plan, which represents a 40% growth over the sales figure of 3.47 million units sold in 2016. This will also include increasing its range of light commercial vehicles, which it plans to globalise and become a market leader. Drive the Future takes over from the company’s last strategic plan called Drive the Change.

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