By 2030, Renault It will be a technology company that integrates cars and not a car company that integrates technology as it is today, as Luca de Meo himself explained at the end of the presentation of his Strategic plan ‘Renaulution’.
Quite simply, Renault has to leave behind the Carlos Ghosn era, which consisted of manufacturing all kinds of cars at large, and embrace new technologies and the way we consume. A change similar to that experienced by the movies, video stores and Netflix is coming.
For the brand, it is not about a new strategic plan that must only return to the path of profits, this plan must lead them to successfully face the enormous change in the market that everyone predicts and that, in a way, has already started.
Obviously, it is not something that they can achieve overnight. First, Renault must return to being a profitable brand and for this it must change its business model, inherited from Carlos Ghosn, and then focus on what will be the true revolution.
Truce with Nissan disguised as subordination
The need to achieve high sales volumes in all markets, due to such a diversified portfolio, and the absence of key segments, is what has led Renault to make huge losses. That race for volumes is what has also led to huge losses for Nissan.
But not only, after some 20 years of Alliance, there was never really synergy between Renault and Nissan, beyond the platforms the Renault Clio and from Nissan Micra. Under the tutelage of Carlos Ghosn, the two sides were involved in a power struggle, which has finally led to the fall from grace of Ghosn and his flight from Japan in a trunk.
In Japan, they have never digested that Renault de facto controlled Nissan. And Renault has not liked that Nissan never really shared technology. With today’s presentation, a kind of truce opens, where they will share some platforms, Nissan will provide autonomous driving technology to Renault, but in the end ceach one will be master of his destiny in his territory.
And Luca de Meo had to finally accept that in some recorded interventions Makoto Uchida, CEO de Nissan, give a more or less subtle approval to the Renault plan, and that the CEO of Mitsubishi, Takao Kato, express his support for Luca de Meo’s plan. Recall that Renault regularly published press releases with Nissan’s negative contributions to Renault’s results (-1,244 million euros in the second quarter of 2020, for example).
In short, to be able to act freely, Luca de Meo, had to give the Japanese team the last word, even if it is simply facing the gallery. And it is that at this level, appearances are as important as the background. Especially for investors.
Once the short term has been solved, with new models such as the Renault 5 electric, with a development time for new models reduced from four to just three years, by the way, the union of Dacia and Lada with the Dacia Bigster first of futuro Lada Niva that will have a global vocation, Renault will start its true revolution. It will cease to be a car manufacturer but a technology company that, among others, manufactures and sells cars, but also services and energy.
Renault, a new technology company
The transformation begins timidly in the short term with the future Renault Megane electric whose software has been developed in collaboration with Google. Not only will the car’s infotainment system be based on Google technology, but alsoThe brain of the car, so to speak, will be from Google.
This will allow to have an assistant and voice controls from Google, but also remote updates (OTA, Over The Air) of different functions of the car.
The next step is supported by two brands, one is Mobilize, and the other is Software Republic, with the Renault Digital Software Factory. The first will provide both vehicles and services, while the second will focus on all kinds of software. And both are needed to be successful.
The Software République is an entity in which several companies collaborate, such as Orange, Atos, Dassault Systems and of course, Renault Digital Software Factory.
With more than 1,000 dedicated engineers and research centers in each company, they will work on topics as seemingly diverse as user interfaces and experiences (UI / UX), big data, cybersecurity or even defense – that is, the military industry. . And there is always something from all those fields that can be applied to the automotive industry.
Mobilize: services and occasionally cars
Software Rrépublique is a key piece in this transformation, albeit in the shadows. The visible face of this transformation will be the new brand Mobilize. It is not a typical car brand, although they have revealed various vehicle concepts.
Mobilize starts from the fact that today there is a huge difference between what you pay to buy a car and the use that is made of it. In the words of Clotilde Delbos, CEO of Mobilize and CFO of Renault, “We pay 100 and we use only 10.” Also, the depreciation of a car is huge. On average, three years after its registration it has lost 50% of its value.
Mobilize wants to offer global services both to individuals (B2C) and to companies and large fleet operators (B2B) and government entities (B2G). By 2030 the goal is that Mobilize accounts for 20% of the Renault group’s business volume.
To do this, Mobilize will have three main business areas. The most visible will be the rental, leasing or payment for use of its vehicles, but it will also have car sharing services, fleet management, reconditioning of old vehicles and the recycling of batteries. Mobilize will be much more than car sharing.
Thus, Mobilize will propose a range of up to four electric vehicles, from the small two-seater EZ1, made with 59% recycled parts; to the EZ Flex, a light industrial truck for last mile transportation, with a Dacia Duster recycled and electrified in the middle along with an electric sedan 4.6 meters long and more than 400 km of autonomy.
These vehicles can be sold, rented with enormous flexibility, either through leasing, renting or pay per use. But he will also take care of the management of those cars using the experience gained with Zity in Madrid – where if it weren’t for the pandemic it would have achieved benefits, Delbos said.
Thanks to that experience, Artificial intelligence and to the developments of the Software République, they will be able to improve the availability of cars in car sharing services, but also manage the fleet of cars rented from a transport company, for example.
Mobilize cars will have largely recycled components, when they won’t be recycled cars at all. The circular economy is another important pillar of Mobilize. On the one hand, the Re-Factory, in Flins, will be in charge of carrying the Renault Zoe up to a million km of useful life, reconditioning them so that they can have a second or third life.
But it will not be the only model, in the Re-Factory the retrofit will be practiced. The old Renault gasoline or diesel models will be converted to electric cars, the light industrials will go from diesel to biogas. Mobilize provides for “Remanufacturing” by 2030 of up to 100,000 cars per year.
All of this will take place at the Flins factory, which is already the largest recycling company in France today. But there is more, when those electric cars reach the end of their useful life, Mobilize will recycle their batteries, and other components. For example, With each recycled battery, a minimum of 1,000 euros can currently be generated.
Luca de Meo’s bet is very risky. Many are the automotive groups that intend to reinvent themselves as mobility companies, the group Ford, Porsche and the PSA group are the two most striking examples, but only Renault is directly committed to taking a 180º turn, completely reinventing itself, beyond simply embracing the electric car and car sharing services.
Time will prove you right or not. In time, we will see if Renault gets the resources to carry out its revolution or not. In any case, it is a a question of double or nothing for Renault.
*The article has been translated based on the content of Motorpasión by feeds.weblogssl.com. If there is any problem regarding the content, copyright, please leave a report below the article. We will try to process as quickly as possible to protect the rights of the author. Thank you very much!
*We just want readers to access information more quickly and easily with other multilingual content, instead of information only available in a certain language.
*We always respect the copyright of the content of the author and always include the original link of the source article.If the author disagrees, just leave the report below the article, the article will be edited or deleted at the request of the author. Thanks very much! Best regards!