December 7, 2022

Wire Service Canada

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The Renault group is divided into five

from one to five Groupe Renault officially unveils the new phase of its relaunch plan. responsible Luca de Mio (In the picture above), during Capital Market Day 2022, details the third chapter of an industrial rehabilitation plan based on five business units. The first will consist of separating the activities related to electric mobility from the heat engine business, with the birth of the new company Ampere. The second consists of a brand Alps, which from 2026 will have an all-electric range. The third of the company crowd Active in mobility services including car sharing. The fourth is related to the circular economy and the reuse of materials, such as battery recycling, and is called The future is neutral. The last division is called Energyis dedicated to activities related to heat engines and anticipates a 50-50 joint venture with China’s Geely Corporation.

Heat engines with Geely The main element of Groupe Renault’s strategy is horse projectthat is, the separation of activities related to combustion engines, which will therefore be within a single engine 50% joint venture with jelly, of its electric vehicle unit, which will go public in the second half of next year. The move should help Renault raise funds for the development and technology of electric vehicles, and bridge the gap with major companies such as Stellantis.

Radical restructuring – Renault CEO Luca de Meo In order to meet the new challenges, with the costly transition to electric mobility, he has thus begun a radical revision of the group’s operations. The automaker has set a goal to at least partially finance the new business Operating Margin 8% for 2025, which will rise to more than 10% in 2030, compared to the 5% projected for this year. It aims for operating cash flow of more than €2 billion annually between 2023 and 2025, from more than €1.5 billion this year, which will rise to more than €3 billion over the next five years (2026-2030).

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Margins must be increased – According to the French company division Ampere It will tie in 2025 with an operating margin of about 10% in 2030. Sports car brand Alps It will generate revenue of €2 billion in 2026, and over €8 billion in 2030, with a goal of breaking even in 2026. For Ampere, the company is looking for outside investors, to evaluate its Euronext Paris IPO in the second part of 2023 It aims for a valuation of around €10 billion (a valuation that could exceed Renault’s current market value of €9.4 billion). The French House intends to keep the majority in Ampère and is dependent on itSupport potential investors Reference, such as Qualcomm. The company will have a portfolio of six electric cars by the end of the decade and expects to produce about one million electric cars per year for Renault by 2031.

Dacia The brand will also be of great importance Dacia, which, however, will have to increase the operating margin, from 10% currently to 15% by 2030. The brand, in addition to capitalizing on the advantages of the energy project, will focus on entering the C segment, which will take place with the launch of the Bigster SUV. , which will be accompanied by two other models.