Renault’s new CEO, Luca de Meo, has announced a reorganization of the group around four brands. The objective is to improve product quality and provide the French car manufacturer with higher margins.
“I have decided to organize the Renault group around four brands and no longer by geographical areas. There will be the Renault brand, which I will manage directly, but also Alpine, Dacia, and a new brand in charge of + news mobilities + “, he said in an interview with Le Point published on Wednesday.
“There will be one boss per brand. This will allow us to be more focused on the customer,” explained Mr. de Meo. The former boss of Seat, the Spanish manufacturer of the German giant Volkswagen, arrived at the beginning of July at the head of the French group in crisis.
“The Alpine brand has a very specific niche identity, very sporty, very French. We will not necessarily stay in the only retro and classic register of the Alpine A110”, he detailed.
Focus on profits
Concerning the Romanian label Dacia, “its low cost proposition is very strong. The brand must not stray from this original positioning, but it must be given a more cooler image”, estimated the Italian manager. The latter is due to announce in January 2021 his strategic plan for the group.
“The big subject is obviously Renault’s positioning (…). I am convinced that Renault’s soul lies in its French roots. This brand has always been more creative than the others, it is in its culture”.
“It must play with modernity and innovation. Renault can embody the new wave of the automotive industry,” he said, stressing “wanting to breathe new life into” its design.
The focus will be on profits. “We are going to change the whole organization to move from a policy of volumes to that of value. It is the margins that make it possible to invest and develop”, explained Mr. de Meo, saying that he wanted “quality for products and profitability “.
According to him, “Renault must develop in vehicle segments more profitable than small cars” by drawing inspiration from its great French rival. “Carlos Tavares at PSA has done an extraordinary job with a good move upmarket, with the Peugeot 3008 and 5008 or the Citroën Aircross,” he said.
Luca de Meo finally suggests that Renault could withdraw from certain foreign markets: “internationalization (…) if it is not profitable, what is the point? You have to be international in markets that report “.
From there to leaving China, where the group has accumulated losses without succeeding in breaking through? “It is the number one market in the world and one of the centers of the automotive industry for major innovations in electricity, connectivity and self-driving cars. I believe in being where the music is playing. Afterwards, it’s all a matter of timing and priority, ”he said.