Luca de Meo, the managing director of Renault, never hid it. “Value more than volumes”, the creed that constitutes one of the pillars of “Renaulution”, the automaker’s strategic plan, is inspired by PSA. Indeed, Carlos Tavares had applied this recipe to the letter to straighten out the accounts of the Sochaux group when he arrived in 2014 and now he continues on that path as head of Stellantis.
The new stage of the Renaulution revealed again seems to be inspired by another virtue of Stellantis: pragmatism. The manufacturer born from the merger between PSA and Fiat Chrysler has multiplied strategic alliances with large groups to ensure its electrification and technological revolution while protecting its cash generation. The Japanese Nidec (electric propulsion), the Taiwanese Foxconn (innovative cabins), the American Waymo (autonomous vehicle) or the French TotalEnergies (batteries) are examples. This Tuesday, Renault did the same, announcing the launch or development of various partnerships.
Dassault Systems, Qualcomm, Google
Given the multiple disruptions that the automobile industry is experiencing, “no isolated group has all the solutions on its own”, emphasizes Luca de Meo.
“We want to work with the best and the best want to work with us,” he added.
The leader highlighted in particular that his collaboration with Dassault Systèmes to digitize product development allowed him to gain 4% in productivity. Another example: Renault announced on Tuesday the creation of Flexis, a partnership with another manufacturer whose identity has not been revealed, to create a family of commercial vehicles around on-board software, starting in 2026. The idea is for the group to reinforce its leadership in this very lucrative segment.
Renault also used the opportunity to expand its strategic cooperation with US semiconductor group Qualcomm to create a centralized electronic architecture for its future vehicles. The same happens with Google with which the diamond group is reinforcing its collaboration in dematerialized computing (“cloud”).
“Partnerships allow us to access revenue streams that provide structurally higher margins than the automotive ‘core business’, while reducing risk,” explained Thierry Piéton.
Above all, these alliances allow Renault to pursue its offensives in many areas at a lower cost and thus improve both its competitiveness and its ability to innovate.
“Partnerships are at the core of our DNA and will be part of the cornerstone of our future profitability”, insisted Thierry Piéton. These collaborations should allow the group to carry out its revolution with a low intensity of capital”, he added.
“Renault does not have unlimited finances like Tesla, because its market capitalization is much smaller”, sums up an analyst.
Hence the self-interested choice of associations. Horse and Ampere, the two companies whose creations were announced on Tuesday, are perfect examples of this approach.
Horse with Chinese Geely
In the case of Horse, by creating a 50% subsidiary in thermal and hybrid engines with the Chinese Geely, Renault will not receive cash, since the creation of this company is carried out through asset contributions. But the combination of its strengths with the Chinese group will allow it, through the complementarity of products and geographies, to double its market coverage.
Above all, Renault estimated that this association would allow it to generate savings of €2.4 billion over the 2023-2030 period in terms of R&D and investments, as well as a reduction in its fixed costs of €2.5 billion over the same period. . This while benefiting from future dividends from this company or even capital gains during a possible opening to another partner, who this time would invest in cash. Luca de Meo made it clear that groups from the hydrocarbons sector could be interested.
Which investors for Ampere?
In the case of Ampère, opening a fraction of the capital to investors offers Renault the possibility of optimizing the growth of this highly strategic subsidiary. With external financing “we have the opportunity to give Ampere the means to speed up its development” without mistreating Renault’s financial resources, stressed Thierry Piéton.
Qualcomm will thus contribute technologies, resources and financing to society. This will also help keep costs down. The amount of capex (investments) and R&D will remain capped at 11% of billing, said the group’s financial director.
In the end, partnerships seem to be the real fuel for this “revolution” that Renault wants to launch.
Source: BFM TV
