Renault CEO Luca de Meo will current his turnaround plan for the automaker on Jan. 14. The Italian government plans a “revolution” on the French firm, so he’s calling his plan “Renaulution.” De Meo describes the important thing factors of the restructuring to the automaker’s executives and worker representatives in an inner paper of a number of pages. The paper was obtained by Automobilwoche, a German language sister publication of Automotive Information Europe.
De Meo had already outlined the primary key factors of the restructuring in an interview with Automotive News Europe in November. Now the inner paper makes the general idea extra tangible.
Listed below are some key factors:
Price discount
De Meo’s prime precedence is value financial savings. He doesn’t give any concrete figures, however he desires to keep away from parallel developments and expertise fields that aren’t instantly usable. Earlier than de Meo’s arrival as CEO in July, Renault had already introduced its aim of saving round 800 million euros ($975 million) per 12 months in improvement and chopping 1,500 jobs.
Downsizing product vary
De Meo desires to scale back Renault’s broad vary of services and products by round 30 p.c. For instance, he cites the actions of PSA Group CEO Carlos Tavares at Opel, which has discontinued a number of unprofitable mannequin traces.
De Meo desires the discount of mannequin traces to occur with out the automaker dropping gross sales or market protection. That is prone to be very troublesome as a result of shoppers have been spoiled with an increasing number of derivatives and sub-derivatives in recent times, and rivals will exploit any gaps in Renault’s product lineup.
Compact phase focus
De Meo plans to focus much more than earlier than on the high-volume and high-margin C (compact) phase. “The C-segment is the middle of gravity in our providing,” he says within the inner paper. “I am not afraid to say that we are able to obtain a 25 p.c to 30 p.c improve in transaction costs on this phase by 2025.”
The purpose of the autos that Renault sells ought to be to generate income, to not create quantity, he says. Below former Renault-Nissan chairman Carlos Ghosn, greater quantity was the central constructing block for the corporate’s success. The credo was: extra quantity equals extra synergies equals a greater aggressive place. Rising transaction is a core a part of Tavares’s success in turning round PSA.
Worldwide ambitions scaled again
Renault will chorus from overly formidable international plans. “Our geographic growth has not produced the anticipated outcomes,” de Meo says. “In a extremely unstable atmosphere, markets such because the Eurasia area and Latin America haven’t delivered the returns we had hoped for.”
Nevertheless, de Meo doesn’t need to hand over China, regardless that Renault was the final main automaker into the market and to this point has not come near fulfilling its purpose to be a quantity vendor. Renault’s presence in China should be re-invented via new enterprise fashions, relying extra on robust partnerships.
In-house innovation
Renault should as soon as once more develop extra improvements by itself and be much less depending on provider innovations, de Meo says. “You must convey again creativity and experience at Renault. You must let the engineers work as an alternative of letting them handle packages,” he says.
De Meo desires to attract up a 10-year plan to reorganize the automaker’s improvement actions. That is to be carefully linked to improvement at Nissan to keep away from parallel developments and create extra technological synergies.
New enterprise areas
Renault ought to cowl your entire world of cell companies, not simply constructing autos. De Meo has a particular goal: “From 2026, we may have 20 p.c to 30 p.c of our actions in fields that now not have something to do with conventional automotive manufacturing,” he says. Particularly, de Meo mentions the areas of economic expertise, fleet administration, cybersecurity, round economic system and high-tech developments outdoors the automotive world.
Stronger alliance
Renault is not going to abandon or weaken its alliance with Nissan and Mitsubishi. Nevertheless, any joint initiatives should be “extra concrete and exact,” de Meo says. There are “magical initiatives” beneath improvement, he says, with out giving any particulars.
Says de Meo: “If we separate the three members of the alliance from one another, we shall be transferring straight into the second league of automobile producers. I’m subsequently decided to do every part I can to make sure the success of the alliance.”