Renault details dramatic 'Renaulution' transformation strategy

Renault will significantly expand its EV line-up

French brand will expand its EV line-up and increase value; Alpine and Dacia also reinvented

Groupe Renault has unveiled a major new strategic plan, the ‘Renaulution’ designed to spark the firm’s recovery and future growth, which will include a huge expansion in Renault’s electric vehicle range, an expansion of budget brand Dacia’s line-up - and the reinvention of Alpine as a fully electric performance brand.

The strategic plan has been devised by new company boss Luca de Meo, who has called it a “profound transformation” of Renault’s business model, with Group Renault’s focus shifting from maximising volume to increasing the value - ands profitability - of vehicles.

The Renaulution builds on the group’s ongoing recovery and growth plan, and will feature three phases. The ‘resurrection’ phase will run until 2023, and will focus on increasing the firm’s margins and cash generation while the ‘renovation’ phase, which runs until 2025, will include a focus on renewing the line-ups of the Group’s key brands, in order to boost profitability. 

Once those goals are achieved, the ‘revolution’ phase will run from 2025 onwards, and will focus on switching the firm’s business model to a focus on “tech, energy and mobility”, with a focus on electrification and new mobility schemes.

Group Renault says that, under the new plan, it will shift its focus from maximising its market share and sales to profitability, the ability to generate revenue and its investment effectiveness, with the goal of reducing investments in research and capital expenditure and boosting its operating margin by 2025.

The new Renaulution plan involves a new strategy for each of Group Renault’s three key brands.

*Renault*

Under the plan, de Meo wants the Renault brand to become a leader in electrification by 2025, including establishing an ‘electro pole’, likely in Northern France, as the group’s key EV manufacturing site. It will also launch a new hydrogen joint venture with American firm Plug Power, with the aim of gaining a 30% share in the European light commercial fuel cell vehicle market. 

By 2025, Renault has pledged that half of its European model launches will be pure electric vehicles, and it has also committed to hybrid powertrains accounting for 35% of its total sales move.

Renault has also pledged to boost its segment mix with a “C-segment offensive” to boost its position in the European market, and to focus on profitable segments in the Latin American and Russian markets.

The brand will be given a renewed focus on ‘embodying modernity and innovation’, even beyond the car industry. Renault is aiming to become a ‘key player’ in technology including ‘big data’ and cyber security, and a major player in the French ‘circular economy’, which related to EVs and related energy services.

*Alpine*

As previously reported by Autocar, Alpine will be reinvented as Group Renault’s motorsport and performance arm, with a fully electric vehicle line-up. The sports car sub-brand will encompass the Renaultsport cars and motorsport division, including the Renault F1 team (which has been rebranded Alpine F1).

Alpine will have a “100% electric product plan”, developing EVs built on the Renault-Nissan-Mitsubishi Alliance’s CMF-B and CMF-EV platforms. 

It will also co-develop a “next-generation EV sports car” with Lotus, which will likely serve as the replacement for the current A110.

The Alpine F1 team will be “at the heart” of Alpine, which will expand to offer a “global manufacturing footprint” and distribution arm. Group Renault intends for Alpine to become profitable by 2025.

*Dacia and Lada*

Group Renault’s budget brands will remain focused on budget models, although they will expand its line-up with into the larger C-segment. 

Dacia will be given a new “super-efficient” business model, with the aim to improve efficiency by streamlining its line-up by moving from four current platforms to one, from 18 body types to 11, and increasing the production volume of each unit.

The two brands will also expand their line-up substantially, with seven new models launched by 2025, including two in the C-segment above the current Duster range-topper. It is not yet clear how many of those models will be Dacia and how many Lada, which focuses on the Russian market.

Dacia will also revive some “iconic models”, and will boost its CO2 efficiency with an emphasis on LPG and E-Tech hybrid systems.

*Mobilize*

Groupe Renault will also launch a new business unit, branded Mobilize, aimed at developing its interests in data, mobility and energy services, including car sharing schemes. The aim is for Mobilize to account for 20% of group revenues by 2030.

As part of this plan, the Group will develop four purpose-designed mobility vehicles: two for car-sharing, one for ride-hailing and one for ‘last-mile’ deliveries.

Mobilize will also focus on developing new subscription, leasing and pay-as-you-go businesses, maximising the time a car is used for and boosting residuals.

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