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Profit comes first Renault Group will reorganize its corporate structure
Sep 7,2020 09:30CST
The content below was translated by Tencent automatically for reference.

SMM News: a few days ago, Renault Group announced that it will restructure the company structure, focusing on brand content rather than sales data, which is also one of the first important measures since Renault's new CEO Luca de Mayo (Luca de Meo) took office on July 1 this year, aimed at turning the group around.

In addition to Renault, Dacia and Alpine, Renault will set up a fourth (brand) business unit to strengthen investment in the travel sector, but no more details have been released, according to the group statement. Executives will be in charge of different brands, while Luca de Mayo will be in charge of Renault as the main brand.

Global production of Renault reached 1.13 million vehicles in the first half of 2020, down 42 per cent from a year earlier, while car sales reached 1.26 million, down 35 per cent from a year earlier, according to data. Renault's revenue in the first half of the year was about 152.3 billion yuan, down 34% from a year earlier, and the operating loss was as high as 60.2 billion yuan. At the results conference, Luca de Mayo said that Renault had suffered unprecedented losses, but was still confident that the group would recover.

It is reported that under the leadership of Carlos Ghosn, Renault's group strategy was all sales-oriented, but now the group strategy has shifted from focusing on sales to focusing more on brands and model profits. Luca de Mayo believes that this will make the group pay more attention to the market and customers. In addition, the future Renault brand will focus on the high-end automobile market, and the low-end market will not be within the scope of key development.

Editor's comments:

In May, the Renault-Nissan-Mitsubishi alliance jointly released a new business plan, which will make full use of existing assets and share investment in platforms, powertrain and technology. Although the alliance's new career plans have been announced, relations among its members do not seem to have eased much. Renault has pointed out that the record loss in the first half of the year was due to being dragged down by Nissan, while Ghosn, who brought about the alliance between Renault and Nissan, believed that the decline in the performance of the two sides was mainly due to a lack of joint leadership and had little to do with the outbreak of COVID-19. In any case, whether the new business plan can lead Renault and Nissan out of the quagmire can only be judged by the market and time.

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