Renault has unveiled its ‘Drive The Future’ six-year plan to deliver annual revenues of more than EUR70bn and achieve a Group operating margin of 7%+ with a floor at 5% and positive free cash flow every year.
In the plan, Groupe Renault forecasts unit volumes will grow more than 40% to 5m units, compared with 3.47m sold in 2016, as the company expands its product range, including LCV and new zero-emission electric vehicles.
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Drive The Future will build on the foundation of Groupe Renault’s last plan, Drive the Change, which resulted in record growth and operating profit, increased synergies gained through the Alliance with Nissan, expanded product mix and zero-emission vehicles in Europe.
“Groupe Renault is now a healthy, profitable, global company looking confidently ahead,” said Renault chairman and CEO, Carlos Ghosn.
“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.”
Key elements of the plan include:
Worldwide profitable growth:
- 21 new vehicles including 3 add-ons
- Expanded Russia presence through Renault and investments in AVTOVAZ (Lada)
- Accelerating opportunities in China, new strategic joint ventures in EV and LCV Growing market opportunities in Brazil, India, Iran
Alliance scale and technologies to support the growth:
- €4.2 billion in Monozukuri savings over the plan
- Common platforms – 80% of Group Renault vehicles
- R&D Investment – €18 billion over six years, with a multiplier effect from the Alliance
- Connected – 100% vehicles connected in key markets
- Autonomous – 15 AD vehicles
- New mobility services – Ride-hailing, robo-taxi services by end of plan
As well as Groupe Renault key assets:
- Globalising light commercial vehicle (LCV) range; becoming a top global player
- Expanding the group’s already successful Global Access range
- EV Leadership – 8 pure electric vehicles models, 12 electrified models
- RCI Bank and Services – supporting customer loyalty and expanding connected and mobility services
Drive the Future will also include investment in digitalisation in all parts of the company, in new talent recruitment and skills development. Renault maintains its plan will “enhance industrial competitiveness, reduce the company’s carbon footprint, and improve sustainability.”
