Renault's newly appointed CEO is making progress
Renault is set for a significant shift under its new CEO, François Provost, as the automotive giant announces its strategy for the future.
Provost has made it clear that he does not plan any structural changes in the organization, but instead, he is focusing on efficiency improvement and cost reduction. His target is to reduce costs by double-digit percentages.
One of the key areas of focus for Provost is the company's product lineup. The new Clio, available as a hybrid, and the next Twingo, set to be a full electric vehicle, are testament to this focus. The new electric Twingo, scheduled to be unveiled at the beginning of next year, is considered a new benchmark within the company for future projects.
In terms of partnerships, Renault will cooperate more strongly with the Chinese electric ecosystem. This includes leveraging partnerships such as the ACDC R&D center in China and joint development projects with Chinese partners in electrification and innovation. Renault has engaged with Chinese partners like CICC Private Equity for joint ventures related to new energy vehicles and innovation ecosystems. The company will also expand its cooperation with Geely and other Chinese development partners for joint developments and efficiency in purchasing.
Provost's strategy of forming sustainable partnerships will be pursued even more outside of Europe to tap into new markets and maintain competitiveness. South America and India will receive greater focus in Renault's future sales strategy. As an example of their commitment to these markets, Renault has taken full control of the previously jointly operated plant in Chennai, India.
Renault continues to rely on local sourcing for European models, with 70% of parts for European models currently purchased in Europe. The new Clio is larger than its predecessor and has up to 29 assistance systems.
Provost emphasizes the need for a faster pace in model development. Citing the new electric Twingo as an example, which was developed in just 21 months, he aims to accelerate the ongoing transformation of the company.
In addition, Provost wants to increase the gap between Renault and Dacia. He believes that size is less important in the automotive industry, with technology and speed becoming more crucial. Renault will continue to offer affordable vehicles for broad customer segments, especially with the Dacia brand.
Recently, the French have introduced two affordable electric cars, the Renault 5 and 4, but no new announcements regarding the company's electrification were made. The principle of "local for local" remains unchanged for Renault.
In summary, under Provost's leadership, Renault is set to strengthen its presence in the Chinese electric ecosystem, expand its cooperation with Geely and other Chinese development partners, and focus on efficiency improvement and cost reduction. The company will also pursue a strategy of forming sustainable partnerships outside of Europe, with a focus on South America and India, and accelerate the development of new models, particularly electric vehicles.
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