After a year 2020 marked by 8 billion euros in losses, the Renault automotive group is seeking a way out of the crisis.

This seems to involve a change of strategy.

The brand wants to turn to greater profitability, which requires a large savings plan.  

Renault-Nissan is in turmoil and is trying to bounce back.

The automotive group announced Friday morning a record loss of 8 billion euros and a decline of more than 20% of its sales.

Figures linked to the Covid but also to the poor performance of the Japanese Nissan.

So even if the diamond brand wants to be cautious for this year and does not publish forecasts, it remains confident in its ability to rebound.

However, this requires a change in operation: the group wants to stop the race for volumes and focus on profitability.

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A big savings plan to relaunch the brand

This strategy is very simple on paper: sell fewer vehicles but earn more money on each one.

Last year, the group's margin was 3.5%.

A very low figure compared to its competitor PSA which has already bet on this operation.

But this change requires rationalization of costs.

It is for this reason that a major savings plan was launched by Renault's new boss, Luca Di Méo.

A major product plan is therefore expected in the coming months as well as numerous vehicle launches, 24 in total by 2025. Renault will ramp up on hybrids and intends to keep its lead in electric vehicles.

But this year promises to be also tense due to the shortage of electronic components from Asia.

A shortage could delay the manufacture of 100,000 vehicles, according to the manufacturer.

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The group also wants to transform itself into a mobility provider.

The individual car still has a bright future ahead of it but can no longer be the only alternative offered, believes the diamond brand.

Car-sharing, last mile delivery, sedan adapted to VTC services, battery recycling but also innovative financing models ... This is the whole panel that Renault will offer.

These activities should generate 20% of the group's turnover by 2025.