Renault must keep lowering costs to simplify the company and achieve their target of putting out their best-ever product range by 2025, CEO Luca de Meo says
Renault say they expect to reach their target of paring €2bn of fixed costs by the end of thi year—a year ahead of schedule. The larger aim is to cut €3bn in costs by 2025. De Meo says the company also still need to recover from the €8bn loss suffered in first half of 2020 in the midst of the coronavirus pandemic.
Renault’s output will be cut by 500,000 cars this year, more than double the previous forecast, due to the global semiconductor shortage, but the company have maintained their profit outlook, helped by higher car prices and the cost cuts. De Meo expects 20 to 30 per cent of the automaker’s turnover to come from non-traditional revenue sources within 10 years as he works to make the company less dependent on other companies. Renault’s new unit dedicated to mobility services, Mobilize, is to produce 20 per cent of the group’s automotive turnover by 2030.
