Post-Renaulution: Renault Group Breaks Profitability Record

Renault Group, the iconic French multinational automobile manufacturer known worldwide for its range of cars and vans, has announced new record profitability in the first half of 2024.

Back in 2020 due to the onset of COVID-19, Renault Group experienced substantial losses- pushed to one of the lowest financial points in its history.

But now the Group celebrates staggering financial results, with group revenue and automotive revenue rising resulting in an impressive net income of US$1.52 bn. 

Building on these results, the Renault Brand is ranked third in Europe and first in France, leading in light commercial vehicles (LCVs).

Renault’s Sandero is the best-selling car across all automotive channels, whilst Dacia is one of the top ten best-selling brands in Europe. 

Renault Group's Alpine brand, which specialises in French-style sports cars, has also seen strong double-digit growth before its new launches.

Ampere, the company’s brand designed to lead the electric vehicle transition in Europe, was also launched. 

On top of all this, HORSE, Renault Group’s global innovation and manufacturing partner for low-emission and alternative-fuel powertrain solutions has continued to grow. 

With a strong order intake in Europe, consisting of 2.6 months of forward sales and a healthy 500ku inventory level, Renault Group looks poised for further financial success.

The company has planned ten launches this year alone and has established more than 20 partnerships.

Driving this financial success is Renault Group’s transformation into a next-gen automotive company, the driving goal of the Renaulution. 

“These record results are the fruit of a considerable work made by the Renault Group teams over the last year,”  says Luca de Meo, CEO of Renault Group.

“Our efforts to reduce costs and focus our commercial policy on value are reflected in a new line-up, the best one that this company has had in 3 decades.

“ We have implemented the traditional levers of performance improvement, but we have also reconnected the company with the innovative mindset that once made its golden years,”

From Renaulation to Renovation to Revolution

Renault’s Renaulution sought to assess and identify the areas where Renault Group could recover, drive growth and establish itself at the forefront of innovation. 

“ For some months now, we have been accelerating our transformation to become the most progressive European automotive company,” Luca continues. 

“Five focused businesses, a horizontal and ecosystemic approach, the strengthening of our supply chain, key processes optimization (“speed of lightness” program), AI deployment at all levels and across all value chains: these are the key ingredients of Renault's new secret sauce.” 

These five businesses will be powered through Renault’s ‘Speed of Lightness programme’, accelerating progress.

The company is aiming in light of this to develop its new Twingo, a city car first introduced in 1992, in two years instead of the typical three or four. 

Industry 4.0 has a critical role to play in making this possible, optimising processes and providing tangible value to customers and shareholders.

One technology that is having a major impact on the journey and landmark success of Renault Group is AI. 

AI: enhancing efficiency & quality

AI is one of the most transformative tools of digital transformation at manufacturers' disposal.

Renault Group has embraced its potential, integrating AI into all its factories and seeking to enhance its role in the overall business. 

“We started out by developing agile applications so that employees could access information in the workshop,” says Éric Marchiol, Chief Industrial Metaverse & Quality Officer at Renault Group.

“Then we collected data from the machines for analysis.

"Today, we can apply sophisticated machine learning and augmented intelligence algorithms to this data, to help assess quality problems, reduce breakdowns and predict vehicle failures.” 

For Renault Group AI has assisted in analysing breakdowns and historical data on malfunctioning robots or presses, creating new avenues for predictive maintenance and accident prevention. 

“In after-sales, it helps in analysing incidents experienced by customers,” Éric continues. 

"Without requiring advanced expertise, it will save our teams an enormous amount of time, meaning they can devote themselves to other, higher value-added tasks.” 

Renault Group has also launched the ‘Renault Group Factory Championship’ in collaboration with GamersOrigin.

They invited employees on industrial sites to enter the world of video games, integrating them into a tech-oriented universe.

This has been launched with the ambition to enhance digital skills and address labour gap challenges, mobilising young hires and bridging the gap with older employees. 

"What we have in common is our firm belief that AI remains, and must remain, a tool used to serve the creativity of our staff,” says Guillaume Merlini, Chairman & Founder of GamersOrigin, Gaming and Esport communications agency. 

“In our case, it means developing unique non-player characters, without ever replacing human ingenuity and skills.”

Renault’s journey to becoming a next-gen automotive company continues, powered by its agility, innovation, flexibility and talented staff. 

"Renault Group’s people are fully committed to achieving this transformation. This is passion, fueling sustainable value creation for all our stakeholders.“

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