PARIS – Renault Group CEO Luca de Meo will move the Renault brand toward the higher end of the mainstream mass market, a strategy that has been a success for the rival Volkswagen and Peugeot brands.
The cornerstone of the strategy will be a focus on higher-margin compact and midsize vehicles, while at the same time maintaining leadership in the small car segment, de Meo said.
In doing so, Renault will be seeking a slice of a 34 billion-euro ($41.2 billion) global profit pool for compact vehicles, versus a 14 billion-euro pool for small cars, he said.
“Over two-thirds of our sales are made in the B (small) segment, when the C (compact) segment profit is always three times more, and it brings an average of 30 percent additional operational margin per car,” de Meo said Thursday in presenting his Renaulution turnaround plan for the money-losing group.
The group’s new product plan has 19 model launches (14 are considered “core” by de Meo) by 2025, with seven full-electric models. There are no minicars and just two small cars including a modern-day Renault 5 among the upcoming launches.