Renault to cut more costs in turnaround drive

Four years after former boss-turned-fugitive Carlos Ghosn unveiled his ambitious view for Renault, based on expanding car volumes globally, De Meo is
...
FILE PHOTO: Luca de Meo, Chief Executive Officer of Groupe Renault, poses in front of a Renault Megane eVision car during a news conference about Renault electric strategy during Renault eWays event in Meudon, France, October 15, 2020. REUTERS/Benoit Tessier/File Photo (REUTERS)
FILE PHOTO: Luca de Meo, Chief Executive Officer of Groupe Renault, poses in front of a Renault Megane eVision car during a news conference about Renault electric strategy during Renault eWays event in Meudon, France, October 15, 2020. REUTERS/Benoit Tessier/File Photo

Renault's new Chief Executive Luca de Meo hiked the French carmaker's cost savings target on Thursday and further cut into the number of cars it plans to turn out as he tries to lift profitability at the loss-making company.

In his first strategy update since taking over last July, De Meo outlined plans to simplify manufacturing and rein in spending in areas like research, while cutting car production to around 3.1 million vehicles in 2025, from 4 million in 2019.

Also check these Vehicles

Find more Cars
Renault Duster 2025 (HT Auto photo)
UPCOMING
Engine Icon1499 cc FuelType IconPetrol
₹ 10 Lakhs
Alert Me When Launched
Renault Kwid (HT Auto photo)
Engine Icon999 cc FuelType IconPetrol
₹ 4.70 - 6.45 Lakhs
Compare
View Offers
Renault Kardian (HT Auto photo)
UPCOMING
Engine Icon1199 cc FuelType IconPetrol
₹ 11 Lakhs
Alert Me When Launched
Renault Kiger (HT Auto photo)
Engine Icon999.0 cc FuelType IconPetrol
₹ 6 - 11.23 Lakhs
Compare
View Offers
Renault Triber (HT Auto photo)
Engine Icon999.0 cc FuelType IconPetrol
₹ 6 - 8.97 Lakhs
Compare
View Offers
Renault City K-ze (HT Auto photo)
UPCOMING
BatteryCapacity Icon26.8kWh Range Icon271 Km
₹ 6 - 10 Lakhs
Alert Me When Launched

Renault also hiked its cost savings target by 500 million euros ($608 million) to 2.5 billion euros by 2023, and set goals to gradually ramp up operating margins, reaching 5% by 2023.

Also Read : Renault unveils new strategy, showcases 14 futuristic electric cars

It has yet to publish margins for 2020, though following the Covid-19 pandemic which disrupted operations, they are likely to be lower than the 4.8% hit in 2019.

Four years after former boss-turned-fugitive Carlos Ghosn unveiled his ambitious view for Renault, based on expanding car volumes globally, De Meo is changing tack, rowing back on a drive to try to grow everywhere.

The executive, who previously ran Volkswagen's Seat brand, said he planned to focus on electric cars in particular in terms of new launches.

"This boosted efficiency will fuel our future line-up: tech-infused, electrified and competitive," De Meo said in a statement.

Renault was struggling with waning sales even before the Covid-19 crisis and has been trying to get a partnership with Japan's Nissan back on track.

Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape.

First Published Date: 14 Jan 2021, 12:53 PM IST
NEXT ARTICLE BEGINS

Check Latest Offers

Please provide your details to get Personalized Offers

Choose city
+91 | Choose city
Choose city
Select a dealer

Want to get the best price for your existing car?

Powered by: Spinny Logo
By clicking "View Offers" you Agree to our Terms and Privacy Policy
Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.