Renault increases its cost reduction target and plans to increase its margin

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In this news, we discuss the Renault increases its cost reduction target and plans to increase its margin

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PARIS (Reuters) – French automaker Renault on Thursday raised its cost savings target from 500 million euros ($ 608 million) to 2.5 billion euros by 2023, and set itself aim to gradually increase its margins by focusing on the launch of more profitable cars.

In a broad strategy update under the leadership of new CEO Luca de Meo, the company said it will reduce the number of vehicles produced, thereby reducing research and development expenses, and simplifying manufacturing processes.

Renault has said it is aiming for a group operating margin of 5% by 2025. It has yet to release margins for 2020, although following the COVID-19 pandemic which has disrupted operations, they should be lower than the 4.8% reached in 2019.

(1 USD = 0.8229 euros)

Report by Gilles Guillaume and Sarah White. Editing by Mark Potter

Original © Thomson Reuters

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