Renault announces new strategy

Thursday, 14. January 2021 09:55

Groupe Renault published on Thursday a new three-phase strategic plan aimed at shifting the carmaker's "strategy from volume to value."

The French company stated it intends to reach an operating margin of above 5% by 2025, generate approximately €6 billion of cumulative automotive operational free cash flow, and improve its return on capital employed by at least 15 points compared to 2019. Capital spending and research costs are planned to be decreased below 8% by 2025.

To that goal, Renault will cut its auto production by almost a quarter, from 4 million in 2019 to 3.1 million in 2025, while using fewer platforms to build its vehicles, cutting the manufacturing costs by €600 per car by 2023. By 2025, half of all automobiles made by the company will be electric. These actions are expected to lower the Group's break-even point by 30% by 2023.

Related Links: Renault S.A.
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Breaking the News / MD