Groupe Renault is hoping that its newly announced Drive The Future six-year global plan will help to deliver massive annual revenues of over €70 billion and achieve a group operating margin of over 7 per cent by the end of the plan.
Drive The Future is aligned with the Groupe Renault vision: sustainable mobility for all, today and tomorrow.
Renault’s popularity in the Middle East is growing with sales in the GCC almost tripling in the past five years. Renault Groupe’s regional sales in the first half of 2017 up 74 per cent compared with the same time last year selling 491000 vehicles in Africa, the Middle East and India last year. Under the new strategic plan the French car brand intends to sell over 800,000 units by 2022.
Under the new plan, Groupe Renault forecasts that global unit volumes will grow more than 40 per cent to over 5 million units, compared with 3.47 million units sold in 2016, as the company expands its product range, including in LCV and new zero-emission electric vehicles and builds on success of its global access range. The plan will also leverage the R&D and global economies of scale from Renault-Nissan-Mitsubishi, the world’s largest automotive alliance, while maintaining financial discipline and cost efficiency.
Drive The Future will build on the strong foundation of Groupe Renault’s last plan Drive the Change, which resulted in record growth and operating profit, increased synergies gained through the Alliance with Nissan, empowered regions, expanded product mix and leadership in zero-emission vehicles in Europe.
Renault Chairman and CEO Carlos Ghosn said: “Groupe Renault is now a healthy, profitable, global company looking confidently ahead. Drive the Future is about delivering strong, sustainable growth benefiting from investments in key regions and products, leveraging Alliance resources and technologies, and increasing our cost competitiveness. Supported by the men and women of Renault, this new plan will unleash our full potential to innovate and grow in a rapidly-changing industry.”
Drive the Future will also include investment in digitalization in all parts of the company, in new talent recruitment and skills development. The plan will enhance industrial competitiveness, reduce the company’s carbon footprint, and improve sustainability.