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Renault is reinventing its entire business, here’s how

Renault, which appears to have revived under the leadership of Luca de Meo, says it sees the myriad of rapid changes in the car industry as just more potential revenue streams, or “price chains,” treat”.

The Renault Group will split into five businesses focused under one umbrella, aiming to become a “Next Generation automotive company” with a revenue opportunity to double today’s by 2030.

It may seem like a confusing touch but bear with us as we explain. The five Renault Group companies are called Power, Alpine, Ampere, Mobilize, and The Future Is Neutral, and each will have its own governance and P&L.


Power

Renault combustion and hybrid unit

The traditional core business of the Renault Group is the production of internal combustion engines (ICE) and hybrid cars under the Renault, Renault Van and Dacia brands.

Renault said that ICE and hybrid vehicles will still account for up to 50% of passenger car sales worldwide in 2040, adding that it expects sales to continue to grow by an average of 2% per year in the coming year. period 2022-2030.

This business wing plays an important role in new 50:50 joint venture powertrain company with Geely will provide complementary powertrains to the Nissan and Mitsubishi Alliance brands and their owners and brands.

From day one, the entity will have sales of more than €15 billion (US$A23 billion) and an annual volume of five million units, providing common powertrains for at least eight relevant OEMs. It will have 17 factories supplying 130 countries, five R&D centers and 3,000 engineers.

It will produce engines, transmissions, HEV systems and batteries, and through the joint venture will double its size and market coverage from 40% to 80% worldwide.

It also wants to develop technologies in the field of alternative fuels, seeking cooperation with a “potential partner from the energy industry”.

THAN: Renault and Geely announce ICE and hybrid joint venture


Alpine

Renault’s halo EV brand focuses on performance

Intended to be a “premium zero-emissions global brand with a racing lineage”, take advantage of the A110 coupe and enter Formula 1.

Alpine today runs a team of 2000 people, of which 50% are claimed to be engineers.

Alpine’s new lineup is expected to go all-electric from 2026. After that, the company plans to sell the next-generation A110 and two additional models as a B-segment hatch (one session) hot version of the 2024 Renault 5 EV) and a small SUV.

The company then plans to produce two larger and “advanced” models to support its international expansion, with half of the expected sales growth coming from new markets. outside Europe including North America and China.

THAN: Alpine adds two larger EVs as it focuses on global expansion


Amps

Renault’s EV wing, designed to operate more like a startup

In plain English, Ampere will develop, manufacture and sell BEV passenger cars, with software-defined vehicle technology, such as online updates, associated with the Renault badge.

The business statement in the Renault presentation said it was the “first pure software and EV playdevice born of OEM disruption”, which is a rhetorical way of talking about a long-lasting brand. life uses a clean nature.

The plan is for Ampere to “bring the best of both worlds,” meaning the know-how and assets from the Renault Group but the focus and agility of a pure EV player like Tesla.

The company is also looking for outside investors and is considering an IPO at Euronext Paris in the second part of 2023. Renault plans to keep “a majority” in Ampere and is said to be counting on the backing of investors. potential investors like Qualcomm.

Headquartered in France, Ampere will be an OEM with about 10,000 employees, including about 3500 engineers, half of whom specialize in software.

By 2030, Ampere’s line of six electric vehicles with the Renault badge will account for 80% of the current main electric vehicle profits: the B segment with the new Renault 5 and Renault 4, and the C segment with the Megane. The new E-Tech, Scénic, and two other EVs have yet to be revealed.

Ampere plans to produce around one million EVs for the Renault brand by 2031.

The Renault Group is building hardware and software partnerships with Qualcomm Technologies (a computing platform based on Snapdragon Digital Chassis) and Google (an Android-based open operating platform with application developer access). third-party).


Motor

Renault financial services and vehicle sharing cánh

Mobilize Financial Services already has four million customers and will expand its traditional business while developing new profit streams such as subscriptions, insurance and operating leases.

It will be a vehicle-as-a-service provider with purpose-built vehicles that generate recurring revenue – up to three times in total over the life of a vehicle.

“What sets Mobilize apart from any other automotive brand is that it comes from service to product and not the other way around,” says Renault.


The future is neutral

BILLIONhe focuses on recycling batteries and other things

The unit will provide end-to-end recycling solutions at each stage of the vehicle’s lifecycle: i.e. supply of parts and raw materials, production, use and end of life.

It aims to achieve value chain coverage of over 90% by 2030 and become the European leader at industrial scale in the growing circular automotive economy.

It will serve the Renault Group as well as the industry as a whole and is opening a small amount of its capital to outside investors with the goal of co-financing investments of around 500 million euros through 2030. .


Renault chief Luca de Meo said: “Today’s announcements are a new sign of the Renault group’s determination to prepare the company for the future challenges and opportunities posed by the transformation. change our industry.”

“After implementing one of the fastest and most unexpected recovery plans, after preparing the company for growth by ensuring the development of the best product line in decades, we intend to position ourselves faster and stronger than the competition across new automotive value chains: EVs, new software, mobility, and the circular economy.

“…Renault Group is one of those teams, benefiting from simplified governance and digital management platforms that foster collaboration and break through the vulnerabilities typical of traditional organisations. “




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