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Renault Sees Higher Revenues, Volume Under New 6-yr Plan

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French carmaker Groupe Renault (RNSDY.PK,RNSDF.PK,RNT.L) announced Friday a new strategic plan, "Drive The Future 2017-2022, aiming to boost revenues and volumes over a six year period. Renault will offer 8 pure electric vehicles and 12 electrified models by the end of the plan.

Renault Chairman and CEO Carlos Ghosn said, "... this new plan will unleash our full potential to innovate and grow in a rapidly-changing industry."

By the end of the plan, the company expects to deliver annual revenues of over 70 billion euros, compared to 51 billion euros in 2016. The company also expects to achieve a group operating margin of over 7 percent, representing a 50 percent increase in value, with a floor at 5 percent, and positive free cash flow every year.

The company previously expected a 7 percent operating margin.

Under the plan, the company forecasts that unit volumes will grow more than 40 percent to over 5 million units, compared with 3.47 million units sold in 2016. The company sees doubling sales outside of Europe as it plans to expand product range including LCV and new zero-emission electric vehicles.

Key elements of the plan include 21 new vehicles including 3 add-ons, expanded Russia presence through Renault and investments in AVTOVAZ (Lada), accelerating opportunities in China, and growing market opportunities in Brazil, India, and Iran.

The company sees 15 AD (Autonomous) vehicles and new mobility services - ride-hailing, robo-taxi services by end of plan.

The plan also targets 4.2 billion euros in Monozukuri savings, and research & development investment of 18 billion euros over six years.

With Groupe Renault's last plan Drive the Change, the company has gained record growth and operating profit, and increased synergies through the Alliance with Nissan.

Ghosn added, "Groupe Renault is now a healthy, profitable, global company looking confidently ahead. Drive the Future is about delivering strong, sustainable growth benefiting from investments in key regions and products, leveraging Alliance resources and technologies, and increasing our cost competitiveness."

In another development, Renault Sport Racing announced the upcoming arrival of Marcin Budkowski at Enstone as Executive Director. Budkowski will oversee all chassis development and production activities.

Cyril Abiteboul, Managing Director Renault Sport Racing, said, "Marcin's mission will be to continue the strengthening of Enstone to enable Renault to join the top Formula 1 teams by 2020, through relying on the proven personnel of the likes of Bob Bell, Nick Chester and Rob White."

In Paris, Renault shares were trading at 86.44 euros, up 0.98 percent.

by RTT Staff Writer

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