Fight over the price in Europe. Premium cars out of it. Renault has presented futuREAdy its roadmap for the next four years. Nearby goals for a market that lives upside down, fighting for a reconversion that the public does not end up embracing, in which regulators lead the way and where solutions are sought beyond Europe.
futuReady. It is the name of the plan presented by Renault this morning. The company, led by François Provost as CEO of the Renault Group, presented this morning a roadmap that takes over from Renaulutionthe project presented by Luca de Meo in which a separation of powers within the company was devised, which promoted the offensive in the AB segment of electric cars but also opened the door to the combustion engine in an alliance with Geely.
Now, the company has set a new milestone: 2030. It is the date that Renault marks as the red line to launch 36 new models on the market distributed between Renault, Alpine and Dacia. Of them, 26 cars will use the Renault diamond, with 12 launches for Europe and 14 launches outside our continent.
The project talks about maintaining jobs, incorporating artificial intelligence into processes, new electric platforms… but it also makes clear a clearly differentiated Renault: those inside and outside the EU.
Inside. For Europe, Renault is clear that the future is electric… or almost. These are its guidelines:
- New electric platform to cover the B+ to D segment. That is, cars above the Renault 5, which complement the current Renault Megane and Scenic and options one step above. Your strong point will be your 800 volt platform with very powerful recharges (they promise 10 minutes of stopping, although no powers or recharge percentages are detailed) and ranges of 750 km according to the WLTP cycle.
- 400 volt architecture for the most affordable versions so we can expect longer charging times (in this case they mention 20 minute recharges)
- Extended range options. That is, electric with small combustion engines to increase autonomy to more than 1,400 kilometers. It is a solution that promises very low emissions (less than 25 gr/km of CO2 Renault promises) and that It is increasingly common in China.
Out. On the contrary, the line that Renault will follow outside of Europe is very clear: take advantage of its collaboration with Geely. That is, leave electricity aside and prioritize the combustion engine. The French have, together with the Chinese company, a company called Horse Project to develop and produce combustion engines. Spain is also key in these developments.
Renault’s accounts involve 50% of sales outside Europe being electrified (in Europe it will be 100%) to sell a total of two million cars a year, of which half should come from beyond the European Union. That is to say, Renault needs to expand its presence outside Europe, broaden its horizons and its strategy is to go up a notch and aim towards the premium segment.
In that position between the generalist and the premiumthe company Filante has already been presented. It is an SUV that will be available first in South Korea and will then jump to Mexico and the Gulf countries. And his credentials are clear:
- Segment E (4.92 meters long, very far from what it sells in Europe)
- Hybrid technology with 250 HP
- 12.3-inch triple screen
- Windshield data projector with augmented reality
A very different approach. The Renault Filante has a clear aspiration to reposition the French company’s position in the current automobile market. The investment for these new models will be 3 billion euros and will take advantage of the synergies with Geely to launch these cars with a higher price and positioning on the market.
The chosen countries are not a coincidence either, South America, South Korea and the Gulf countries are markets where D and E segment cars (from 4.70 meters upwards) have a great weight in the market. It is not enough for Renault to position its cars there, it needs to increase its perception of quality and its brand image if it wants to gain ground.
In addition, higher priced cars are also those that can generate a higher profit margin. First, because generating high profit margins with small electric cars (such as Twingo or the Renault 5) is more complicated. Second, because the association with Geely and the use of combustion engines makes it easier to reduce the structural costs of the launch.
Saving. What is proposed for Europe is: savings. And the company has indicated that it will launch more electric options within our continent to accompany the current ones. Renault Megane and Scenic. But the fight for this market is expected to be very tough and the price will be key.
Therefore, in a clear message aimed at strengthening the economic viability of the project, the brand wanted to make clear how it hopes to save money with its new products:
- On average, your cars will use 30% fewer parts. A trend in the industry that has Tesla and the Chinese market as main supporters.
- Use of 350 humanoid robots in the short term
- Creation of a digital twin of all your plants and control of the supply chain by AI
- They aim to reduce energy costs by 25%
- They aim to reduce production costs by 20%
- They aim to reduce logistics costs by 30%
- Reduction of variable costs per car by 400 euros on average
Two paths. What Renault makes clear to us is that we will have a company with two clearly differentiated paths. Pushed by restrictions promoted by European regulators (although the rules have been relaxed, the electric car remains the main winner in the future), Renault is aware that it needs more competitive cars in the most competitive markets in Europe: the BB-SUV and C and C-SUV segments.
This competitiveness can only be achieved versus Chinese manufacturers with attractive products but, above all, they can play on price since it will be key in cars designed for the city and very punctual getaways outside of it if we talk about segment B. Compact cars should allow us to travel but with a clear investment in an 800 volt platform and the battery being the highest cost of the electric car, it is essential to reduce the rest of the production costs.
Renault has learned a lot with the Twingo. The company has always boasted that it was developed in China in record time, which will allow it to launch it on the market very soon and with a price that starts below the border of 20,000 euros. A similar strategy will be necessary for its next releases. Models from outside Europe should give them the necessary oxygen to expand margins with lower investments.
Photo | renault
GIPHY App Key not set. Please check settings