We have moved into new segments, including pick-ups with Alaskan. We have also continued to renew the range with iconic models such as new Scénic and, more recently, the Alpine A110, presented at the Geneva Motor Show.
We have strengthened our geographical presence – in China, India, Iran, Argentina, Brazil and Russia – with the successful consolidation of AVTOVAZ. Yesterday’s pioneers, we are confirming our place as the leaders of the electric vehicle market, with, among others, ZOE Z.E. 40, Kangoo Z.E. and Master Z.E. Our results in 2016 show the extent of these changes.
One year ahead of schedule, we have exceeded the objectives set as part of the “Drive the Change” strategic plan, with revenue of €51.2 billion, operating margin of 6.4% and net margin of 6.9%, ranking us among the best in the automotive industry. By welcoming Mitsubishi Motors, the Alliance sold close to ten million vehicles, and currently ranks in the world’s top two(1) automotive manufacturers. Our strengthened range and geographical footprint, productive partnerships and record and robust results are the external signs of a deep-seated transformation, led as part of the “Drive the Change” strategic plan since 2011. A key transformation driver has been increasing our profit sources, achieved through a more diversified vehicle portfolio and a better balanced geographical mix. In the last few years we have invested in local production and sourcing, by setting up plants in Morocco, Algeria and China. In France, the agreements signed with the social partners have been crucial to Renault’s return to competitiveness. From 2013 to 2016, production in France grew by 50% and we hired three times more employees than initially planned, or a total 3,000 people. Between now and 2019 we are going to modernize our production base and hire 3,600 employees, 1,800 of whom this year, and 6,000 people on young-professional contracts. Another key driver in our transformation, made possible by the Alliance, has been the generation of economies of scale – and the corresponding reduction in costs. By developing common platforms we have been able to build more vehicles in more countries at lower cost and with lower investment levels. In the last six years, we have saved some €3 billion in this way. We have worked across the vehicle value chain, from product definition to engineering, manufacturing, suppliers and logistics. Renault has changed. Its growth is now more global, more sustainable and more profitable. With our solid foundations and new energy, as part of a prosperous Alliance, we have the mass and resources to sustain our strong performance in the future. To do so, we need to keep changing. Because there are many challenges – the automotive sector is changing. The vehicle of the future will be electric, connected, autonomous. The manufacturing sector is changing, too. New players are emerging, from start-ups to large businesses. The challenge is as much about establishing a vision for the future as about knowing how to get there as fast and reliably as possible and at the most reasonable cost. We need to develop new technologies, recruit new skills, and form new partnerships. The size of the Alliance will help us in this. For Groupe Renault, this will be the objective of the next strategic plan, which will be announced in 2017.
Chairman and Chief Executive Officer
(1) Source: Article published on 27 April 2017 on forbes.com: World's largest automakers (3 months 2017).