A neologism was needed to account for the extent of the transformation project initiated by Luca de Meo to redress Renault. In the land of the French Revolution, the new boss of the French automotive group called his strategic plan “Renaulution”, a contraction of the words Renault and revolution.
The shadow of Carlos Ghosn
Before presenting the main lines of his ambitious strategic plan, the former boss of Seat took the time to deliver his analysis of the situation, and the choices that led the group to the edge of the precipice (identity crisis, sales in decline, operating margin in free fall …). His verdict is final: we must definitely turn the page on the Carlos Ghosn years and quickly.
“The whole system was focused on volume growth, this approach failed,” he implacably hammered in his opening remarks. Since the spectacular arrest of Carlos Ghosn in November 2018, the management, notably led by Clotilde Delbos interim CEO, had largely begun to debunk this strategic foundation.
But Luca de Meo goes further and has carried out a near autopsy of this strategy to bury him better. This is how, according to him, the group has acquired oversized production capacities (5 million capacities, for 3.6 million cars sold). But even more, this strategy pushed sales on the most volumetric segments but not necessarily the most profitable.
“Renault makes two-thirds of its profits on the B segment, while the C segment brings in three times more,” he said. On the internationalization strategy, he also severely judges the results which consisted in looking for “sources of volumes” and not of “profits”: “after ten years of internationalization, we sell cars in 130 countries, but it is It is in Europe that we make three quarters of our profits, or even half with only five countries “. “We have become bigger but not better,” he cruelly summed up.
The word volume therefore disappears from the pediment of the headquarters of Boulogne-Billancourt to …