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Renault Readies New Sales, Profit Push
Renault SA Chairman Carlos Ghosn is preparing a new plan to hike sales revenue 37% and raise the company’s operating margin to at least 7% by 2022, notes Automotive News Europe.
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Renault SA posted record profits, sales growth and cash reserves last year. But Chairman Carlos Ghosn is preparing a new plan to hike sales revenue 37% and raise the company’s operating margin to at least 7% by 2022, notes Automotive News Europe.
Ghosn will reveal further details about the strategy this autumn. The new targets will follow the company’s successful “Drive the Change” initiative. That program boosted revenue 31% to €51 billion and multiplied Renault’s operating margin to 6.4% from 2.8% between 2010 and 2016.
ANE notes that Renault will launch its new plan with one of the market’s youngest array of models. Analysts suggest the company will turn to styling and upmarket models to bolster profitability, much as rival PSA Group has done. Observers note that PSA has become a greater threat to Renault after agreeing in March to buy Adam Opel GmbH from General Motors Co.
Analysts also opine that Renault must look outside Europe—notably India and South America—for much of its future growth. They predict greater new-product coordination between Renault and alliance partners Nissan, Mitsubishi and AvtoVAZ.
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