Renault Group – The Time of Industrial and Financial "Revolution"

A Value-Driven Recovery

As of early 2026, Renault Group is finalizing the profound transformation initiated in 2021 through the "Renaulution" plan. An examination of historical data highlights a major strategic pivot: moving from a volume race to a quest for unit margin ("Value over Volume"). In 2024, the group posted revenues of €56.2 billion, a level comparable to 2019, but with a radically healthier profitability structure. While Renault recorded an operating loss of nearly €2 billion in 2020, the 2024 fiscal year confirmed the model's resilience with a record operating margin of 7.9%. This performance illustrates the abandonment of low-profitability segments in favor of high-contribution models like the Austral, Espace, and Rafale.

Strategic Levers and Competitive Positioning

Renault's strategy is now based on a "constellation" organization, separating activities to maximize agility and capital attraction:

1. Ampere (EV & Software): This is the technological spearhead. Renault aims for a 40% reduction in production costs per vehicle by 2028. The challenge is to secure the B-segment against the threat of Chinese manufacturers (BYD, MG) with the Renault 5 E-Tech and the upcoming Twingo E-Tech, promised at under €20,000.

2. Horse (ICE & Hybrid): In partnership with Geely and Aramco, Renault is pooling R&D costs for combustion and hybrid engines. In a European market where pure electric adoption is hitting plateaus, Renault's hybrid E-Tech offering stands out as a crucial cash-flow relay.

3. Alpine: The brand is becoming a standalone unit, targeting the premium and international markets, with a long-term revenue goal of €8 billion.

Recent News and 2026 Outlook

Early 2026 is marked by the acceleration of the "Revolution" phase. The group is focusing on vertical software integration through its partnership with Google for the Software Defined Vehicle (SDV). Financially, rigorous management of Free Cash Flow (€3 billion in 2024) allows the group to fund its transition without degrading its credit profile, while maintaining an attractive dividend policy for shareholders.

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