French carmaker Renault has adopted a more ambitious cost-cutting plan by 2025 to speed up electrification of the model, the CEO announced, announcing the transformation into a “technology company that works with cars”.
Fixed costs will be reduced by three billion euros by 2025, the company’s new five-year plan shows. The current plan foresaw a cost reduction of two billion euros by 2022.
The new goal reflects CEO Luce de Mea’s desire to accelerate the company’s strategy for electric vehicles.
Renault’s future vehicle line will be “equipped with technological solutions, electrified and competitive,” de Meo said in a statement.
“Today we are a car company that works with technology and in the next phase we will be a technology company that works with cars,” announced the CEO of Renault.
By 2030, we will generate at least 20 percent of revenues from trade in services, data and energy, de Meo added.
The company must first recover from the losses – in the first half of last year, they operated with a loss of 7.3 billion euros, together with the Japanese partner Nissan. Data for the whole year should be presented in mid-February.
De Meo will focus on profit and efficiency and said that over the next five years, the number of cars produced will drop to 3.1 million.
The company also announced last year that it would lay off 15,000 workers. De Meo’s plan does not include additional layoffs, company sources said.
Renault also suffered misfortunes in the alliance with the Japanese Nissan and Mitsubishi Motors, which was influenced by the scandal with the arrest of the then director of the three companies, Carlos Ghosn, reminds dpa.
Source: Seebiz.eu / dpa
Photo: Renault
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