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In 2030, Renault will become a pure electric brand in Europe

Written by / Ma Xiaolei

Edited / Meng for

Design / Shi Yuchao

Source/Autonews by PETER SIGAL

On January 13, Renault CEO Luca de Meo said at a media event at the Renault Technology Center near Paris: "By 2030, Renault will be 100% electric in Europe. As recently as July 2021, De Mayo's claim was 90%.

Stellantis brands Peugeot, Fiat and Opel, Ford Europe have all made similar commitments, and Renault's addition shows that this camp is expanding.

"After 2030, if there is a lack of infrastructure, or high electricity prices, or other factors that are not conducive to the electrification of the entire range, Renault will continue to sell fuel vehicles through the Dacia brand," De Mayo said. ”

"We also have Plan B," he added, "while respecting the brand's 'value for money' sales philosophy, Dacia will stick to the last moment and become the last brand to transform into pure electric." ”

At the Renault booth at the Munich Motor Show, there was the Renault 5 electric prototype (front), the original Renault 5 in the back, and the new Megane E-Tech electric compact car (rear left).▼

In 2030, Renault will become a pure electric brand in Europe

Analyst Matthias Schmidt said Jan. 11 that the European Union is considering new rules that would require automakers to sell only zero-emission vehicles after 2035. In 2021, electric vehicles accounted for about 11% of total car sales in Western Europe, up from 6.8% in 2020.

The EU CO2 emission target will be lowered again in 2025, implementing euro 7 emission regulations, and the cost of the internal combustion engine is expected to increase. "We have an obligation to join Europe's carbon neutral transition." De Mayo said this when talking about Renault's all-electric target.

Renault has just launched the Megane E-Tech electric car, the second all-electric passenger car after Zoe in 2013. By 2025, the brand will also launch at least four all-electric models, including a small Renault 5, a compact SUV, a small crossover or SUV inspired by the classic Renault 4, and a van.

Renault CEO Luca de Mayo said private buyers of the new Renault Arkana coupe SUV account for about 60 percent, with this segment having the highest profits

In 2030, Renault will become a pure electric brand in Europe

De Mayo has rolled out a "Renaulution" turnaround program for the troubled automaker as it recorded a loss of 7.29 billion euros in the first half of 2020.

He came up with the plan in January 2021, six months after the former SEAT brand CEO took the helm of Renault, and now he's handed over a report card.

Renault barely achieved a small profit in the first half of 2021, with an operating margin of 2.8%. De Mayo and Chief Financial Officer and Deputy CEO Clotilde Delbos will announce the automaker's 2021 results on Feb. 18.

De Mayo said: "The depth of the transformation is impressive. He described it as one of the fastest transformations in recent automotive history. He said fixed costs had been cut by 2 billion euros, a year ahead of schedule, and Renault was on track to reduce the break-even point by 30 percent by 2023.

Net pricing rose between 6 and 7 percent, he said, and he acknowledged that automakers are prioritizing selling more profitable cars because of chip shortages, which, combined with inflation, has pushed up prices across the line. "Despite this, we are still better than the market average in terms of pricing," he said. ”

Renault is diversifying its sales channels, increasing the proportion of private buyers and reducing model differences. De Mayo calls the new Arkana compact coupe SUV a car under a "value over production" strategy, with far fewer car combinations than rival Peugeot 3008. 60% of the car's sales go to private buyers, and 60% of the sales are hybrid.

De Mayo said that in terms of engineering, under gilles Le Borgne's leadership, the "ticket" costs (R&D and capital expenditures) of new cars have been reduced by 40 percent, model differences have been reduced by 30 percent and development time has been reduced by 25 percent. "Time is money." He added.

De Mayo noted that Renault's alliance with Nissan and Mitsubishi is a key driver of project cost savings. Since the arrest of Carlos Ghosn in November 2018, the coalition has been more chaotic, exposing deep rifts between French and Japanese companies.

De Mayo said he had only met Nissan CEO Makoto Uchida once since the outbreak, but Renault and Nissan executives would gather for a joint press conference at the end of January.

He said he hopes to form a new way of working with Nissan in Europe, where the two brands can jointly launch new products and initiatives as long as there is a consensus.

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