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GROUPE RENAULT PRESS RELEASE GROUPE RENAULT “ RENAULUTION ” STRATEGIC PLAN Boulogne - Billancourt , January 14 , 2021 - Following approval by the Board of Directors , Luca de Meo , CEO Groupe Renault , presents today “ Renaulution ” , a new strategic plan , which aims to shift Groupe Renault's strategy from volume to value . This strategic plan is structured in 3 phases that are launched in parallel : • • " Resurrection " , running up to 2023 , will focus on margin and cash generation recovery , " Renovation " , spanning up to 2025 , will see renewed and enriched line - ups , feeding brand's profitability , " Revolution " from 2025 and onwards , will pivot the business model to tech , energy and mobility ; making Groupe Renault a frontrunner in the value chain of new mobility . The Renaulution plan will restore Groupe Renault's competitiveness by : • • • taking the 2022 plan¹ one step further , driving efficiency through engineering and manufacturing , to reduce fixed costs and to improve variable costs worldwide , leveraging on current Group's industrial assets and electric leadership in Europe , building on the Alliance to boost our reach in products , business and technology coverage , accelerating on mobility , energy - dedicated and data - related services , driving profitability through 4 differentiated business units based on empowered brands , customers and markets oriented . A new organization will roll - out this plan : the functions , with engineering at the forefront , are accountable for the competitiveness , costs and time - to - market of the products of the brands . The fully - fledged , clear and differentiated brands manage their profitability . In accordance with this value - driven organization , the company will no longer measure its performance on market shares and sales but on profitability , cash generation and investment effectiveness . The Group sets new financial objectives : • • By 2023 , the Group targets to reach more than 3 % group operating margin , about € 3bn of cumulative automotive operational free cash flow² ( 2021-23 ) and lower investments ( R & D and capex ) to about 8 % of revenues , By 2025 , the Group aims for at least 5 % group operating margin , about € 6bn of cumulative automotive operational free cash flow² ( 2021-25 ) , and a ROCE³ improvement by at least 15 points compared to 2019 . The Renaulution plan will ensure the Group's sustainable profitability while keeping on track with its Zero CO2 footprint commitment in Europe by 2050 . Luca de Meo , CEO Groupe Renault , said : " The Renaulution is about moving the whole company from volumes to value . More than a turnaround , it is a profound transformation of our business model . We've set steady , healthy foundations for our performance . We've streamlined our operations starting with engineering , adjusting our size when required , reallocating our resources in high - potential products and technologies . This boosted efficiency will fuel our future line - up : tech - infused , electrified and competitive . And this will feed our brands ' strength , each with their own clear , differentiated territories ; responsible for their profitability and customer satisfaction . We'll move from a car company working with tech to a tech company working with cars , making at least 20 % of its revenues from services , data and energy trading by 2030 . 1 The 2022 plan of reducing fixed costs by more than 2 billion euros over 3 years was presented on May 29 , 2020 . 2 Automotive operational free cash flow : cash flows after interest and tax ( excluding dividends received from publicly listed companies ) minus tangible and intangible investments net of disposals +/- change in the working capital requirement 3 ROCE = Auto Operating Profit ( incl . AVTOVAZ ) * ( 1- average tax rate ) / ( PP & E + intangible assets + financial assets - investments in RCI / Nissan / Daimler + WCR )