On February 10, 2011 Carlos Ghosn, Chairman and CEO of Renault, introduced the Group's new strategic plan. Renault 2016 – Drive the Change is founded on Renault’s ambition to make sustainable mobility accessible to all, expressed in the brand tagline, "Drive the Change".
A strategic plan covering a six-year period
This strategic plan covers a six-year period with a mid-term review at the end of 2013. This will allow us to build a long-term strategic outlook to ensure continuity in operations and to establish precise, quantified priorities for the three years to come.
Renault 2016 – Drive the Change has been built to meet two objectives:
- ensure the Group’s growth,
- generate free cash flow on a lasting basis, with the following aims for the 2011-2013 period: sales of over 3 million vehicles in 2013 and at least €2 billion in aggregate free cash flow.
The Renault group will work on seven key levers to meet these objectives:
- pursue the innovation policy,
- strengthen the product offer,
- reinforce the image of the Renault brand,
- ensure the excellence of the distribution network in customer relations,
- control investment and R&D expenditure, - reduce costs,
- maintain positions in Europe and pursue growth internationally.
Commenting, Carlos Ghosn, Chairman and Chief Executive Officer of Renault, said: “The success of Renault 2016 - Drive the Change relays on the mobilization and engagement of the men and women of Renault throughout the world. They are the key to the company’s future. It is their commitment that will contribute to building day after day the Renault of tomorrow. A more competitive Renault meeting stakeholders’ expectations. A strong Renault with a powerful brand image and a benchmark level of quality and services that will make all our employees proud. A Renault as established in its French roots and as at ease all over the world, making mobility affordable for all everywhere. A sustainable Renault in line with the energy and environmental challenges of the 21st century.”
In 2013, the European market remains uncertain and is expected to contract by at least 3% with a French market down 3 to 5%. The global automotive market (PC+LCV) is expected to grow 3% year on year. This growth will be fueled by positive momentum expected in China, North America, India (+11%) Russia (+5%), and Brazil (+1.5%).
In this context, Renault will pursue its strategy of international development. In Europe, the Group is targeting market share growth with new product launches (Captur, ZOE, Clio Estate, New Logan) and the full impact of the products launched at the end of 2012 (Clio IV and New Sandero) with a sustainable pricing policy.
Renault Group is targeting for 2013 (provided European and French markets are not significantly worse than expected): units sales growth, positive Automotive operating margin and positive Automotive operational free cash flow.