Renault’s "Renaulution" Plan Keeps Morocco as Key Production Hub Amid Global Restructuring

The Renault group plans to reorient its strategy from the race for volume to value creation and wants to impose a "strict discipline in terms of costs". It also plans to extend this new policy internationally by focusing "on high-margin markets, namely Latin America, India and Korea. Renault also wants to consolidate its presence in Spain, Morocco, Romania, Turkey and Russia, it is specified.

This new plan provides for the downsizing of its industrial capacity, which goes from 4 million units in 2019 to 3.1 million units in 2025. As for production, it will be rationalized by going from 8 to 4 engine families and from 6 to 3 platforms (chassis). In total, Renault wants to achieve a 3% operating margin by 2023, with a 10% to 8% reduction in research investments as a percentage of turnover, and 5% by 2025.

For Luca de Meo, CEO of Renault, this reform should make it possible to "create a more balanced and more profitable product portfolio with 24 launches by 2025 - half of which in the C/D segments (compacts and sedans) - and at least 10 electric vehicles."

As for the cost savings plan announced in May, estimated at more than 2 billion euros over three years and providing for some 15,000 job cuts worldwide, it is completed "ahead of schedule". The group also plans to extend it to 2023 to achieve 2.5 billion euros in savings, with a target of −3 billion euros by 2025.