Renault hikes cost savings goal, eyes margin growth

Renault on Thursday hiked its cost savings target by €500m (roughly R9.27bn) to €2.5bn (roughly R46.4bn) by 2023.
Renault on Thursday hiked its cost savings target by €500m (roughly R9.27bn) to €2.5bn (roughly R46.4bn) by 2023.
Image: HAROLD CUNNINGHAM

French automaker Renault on Thursday hiked its cost savings target by 500m (roughly R9.27bn) to 2.5bn (roughly R46.4bn) by 2023, and set goals to gradually ramp up margins as it focuses on launching more profitable cars.

In a wide-ranging strategy update under new CEO Luca de Meo, the company said it would cut the number of vehicles produced, reducing its spending on research & development as a result, and simplify manufacturing processes.

Renault said it was targeting a 5% group operating margin by 2025. It has yet to publish margins for 2020, though after the Covid-19 pandemic which disrupted operations, they are likely to be lower than the 4.8% hit in 2019.


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