Renault CEO unveils brand-focused revamp to help spur turnaround

[BOULOGNE] Renault announced a new corporate structure pegged to four brands in the first move by chief executive officer Luca de Meo to turn around the struggling automaker.

Alongside Renault, Dacia and Alpine, a fourth business unit will be formed for new mobility, according to a statement Thursday. Top executives will run each operation, with Mr de Meo heading up the flagship Renault marque.

The change reflects a switch from "a search for volume to a search for value and profitability," Mr de Meo said. The revamp will "make it possible to work in a simpler way, more oriented to the markets and customers." The CEO officially took the reins in July just as Renault reported a record 7.29 billion-euro (S$11.7 billion) first-half loss due to the pandemic and losses at its partner, Nissan Motor. While it already forged a plan to cut jobs and capacity, Mr de Meo plans to set out his recovery plan in January.

The brand-focused reorganisation will see Denis Le Vot, who heads regions, sales and marketing, also taking over the no-frills Dacia.

Cyril Abiteboul, managing director of Renault sport racing, will head up Alpine, while Clotilde Delbos, deputy CEO and CFO, will oversee new mobilities. The company is pushing into car-sharing through its Zity network as well as enjoying success in Europe with its all-electric Zoe car, which has become a best-seller in that segment in some countries.

The company already announced a plan to eliminate about 14,600 jobs worldwide and to lower production capacity by almost a fifth in a bid to cut costs by more than 2 billion euros. About 600 million euros of that is forecast for this year.

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