Groupe Renault Aims To Save €2 Billion With Its ‘Transformation Plan’

In Electric Mobility, Clean Fund, Clean Talk, News, Products, Sustainability
Groupe Renault

Groupe Renault today presents its transformation plan, which aims to achieve savings of more than €2 billion over three years and to lay the foundations for a new competitiveness.

The difficulties encountered by the Group, the major crisis facing the automotive industry and the urgency of the ecological transition are all imperatives that are driving the company to accelerate its transformation.

Beyond this, the draft plan aims to lay the foundations for Groupe Renault’s long-term development. In France, the Group would be organized around strategic business areas with a promising future: electric vehicles, LCVs, the circular economy and high value-added innovation.

The key focus areas of plan which would result in huge saving as per company are-

  • Improving efficiency and reducing engineering costs, by taking advantage of the strengthened assets of the Alliance, will save approximately €800 million
  • Optimization of production saving approximately €650 million
  • Increased efficiency of support functions, will save approximately €700 million
  • Refocusing activities for a better allocation of resources

In a context of global uncertainty and complexity arising due to pandemic, this plan is vital to guarantee a solid and sustainable performance, with customer satisfaction as a priority.

By capitalizing on many assets such as the electric vehicle, by capitalizing on the resources and technologies of Groupe Renault and the Alliance, and by reducing the complexity of development and production of its vehicles, they want to generate economies of scale to restore overall profitability and ensure development.

These plans will be presented to employee representative bodies in accordance with applicable regulations.

The estimated cost of implementing this plan is in the order of €1.2 billion.

The above story is based on GROUPE RENAULT’s Press Release; editied by Clean-future Team

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