Groupe Renault today announced ‘Drive The Future’, a new six-year plan to deliver annual revenues of over €70 billion1, achieve a group operating margin of over 7% by the end of the plan, with a floor at 5%, and positive free cash flow every year. Drive The Future is aligned with the Groupe Renault vision: sustainable mobility for all, today and tomorrow.
The plans reflect the vision laid out last month by the Renault Nissan Mitsubishi alliance, the world’s No. 1 carmaker by sales.
Electrified models will comprise half of Renault’s line-up by the end of 2022 as the carmaker rolls out 8 new all-electric cars and adds 12 hybrid vehicles. Electric cars are “turning into a significant contributor to our performance while other automakers are just starting the journey”, Chief Executive Carlos Ghosn said on Friday.
Under the Drive The Future plan, Renault forecasts that unit volumes will grow more than 40% 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.”