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Strategy: Renault unveils a reorganization plan around its four brands

The car manufacturer Renault unveiled this Thursday, September 3, a project to develop its organization around its brands. The latter should be grouped around four “business units” (BU) namely Renault, Dacia, Alpine and new mobility.

According to the staff of the diamond firm, this restructuring aims to give each BU an organization that is at the same time more autonomous, simpler and more oriented towards results. Also, the manufacturer intends, through this new dynamic, to strengthen the cohesion, motivation and feeling of belonging of the teams thus grouped by brands. Still according to Renault, the organization of functions at the transversal level will also be included in this new reflection.

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“The company needs to change the game module and move from a search for volume to a search for value and profitability”, said Luca de Meo. And the new CEO of Groupe Renault to continue: “The organization around four strong brands and major cross-functional functions would make it possible to work in a simpler way, more oriented towards markets and customers, with a team spirit, to achieve the best possible results. It is an essential lever for the Group’s recovery ”.

Luca de Meo, CEO of Groupe Renault.

A project which now requires a new organization in terms of management; Luca de Meo is in charge of the Renault brand, while Denis Le Vot, Director of regions, sales and marketing of the group, will take charge of Dacia. In addition, Clotilde Delbos, Chief Financial Officer and Deputy Managing Director will lead the brand dedicated to new mobility. Finally, Cyril Abitboul, Managing Director of Renault Sport Racing, will for his part be responsible for the Alpine sports brand. “As soon as it is sufficiently completed, this organizational change project will be shared with the employee representative bodies,” Renault said in its press release.

For the record, Luca de Meo, who took control of Renault on 1is last July, is working actively with its teams on an important strategic plan which should be unveiled by January 2021 and which has for primary vocation to straighten out the diamond firm.

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With a loss of 7.3 billion euros in the first half of 2020, the Renault group recorded a historic loss, in addition to the health crisis and Nissan’s difficulties internationally. And in order to return to profitable growth, Renault has embarked on a drastic savings plan of two billion euros and intends to reduce its global production capacity to 3.3 billion.

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