(AOF) – Renault Group announces the creation of a driving simulation and immersive simulation center, “serving the design, validation and then serial development of vehicles”. In a new building dedicated to the Guyancourt Technocentre, this center will benefit from Roads, an immersive driving simulator which allows you to drive the digital twin of the vehicles in development, and “to test its various dynamic services as early as possible, and in particular the aids driving, in virtual and hyper-realistic environments”
“The inauguration of our innovation center dedicated to immersive simulation and our brand new tool, Roads, represent a significant step forward in the digital transformation of Renault Group,” declares Gilles Le Borgne, Renault Group Director of Engineering. “In a context of increasing complexity of vehicles and on-board technologies, mastery of immersive simulation is a major asset to enable our engineers to create even more efficient vehicles, in particular with the perspective of Software Defined Vehicle.”
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Key points
– Fourth largest automobile manufacturer in the world, created in 1898 and present under the Renault, Dacia, LADA, Alpine and Mobilize brands;
– Global industrial positioning, with a turnover of €46.2 billion, more than 50% of which is generated outside Europe and with strong positions mainly in the following countries: France, Italy, Turkey, Spain, Belgium-Luxembourg, Romania, Morocco and Poland;
– Business model: repositioning on mid-sized vehicles, on the quality of the electric or hybrid vehicle offering and flexible services;
– Capital held at 15% (29.05% voting rights) by the French State, 15% by the Nissan subsidiary, and 3.61% (5.88%) by the employees, the board of directors of 17 members being chaired by Jean-Dominique Senard, Luca de Meo being general director;
– Strengthened balance sheet with net debt reduced to €426 million, cash assets reaching €15.8 billion.
Challenges
– “Renaulution” strategy in 3 stages, the objectives of which will be updated in autumn 2022: resurrection until 2023: brand autonomy, rationalization of platforms from 6 to 3, “mid-range” offer increased to 40% revenues versus 15%, operating margin of +3%, free self-financing of €3 billion / renovation from 2023 to 2025 through the renewal of ranges / renaulution: ramp-up in the use of hydrogen in professional vehicles with a market share target of 30% in 2030;
– Innovation strategy focused on connectivity, services and electric vehicles: network of experts, innovation labs (California, France, Israel), ReKnow University dedicated to electrification, data cybersecurity, etc. / partnerships: CEA and the Moveo, Sysematic and ID4Car competitiveness clusters… / NeVeOS vehicle electronic architecture project / E-TECH hybrid technology and French and carbon-free batteries / Renault Venture Kapital and Alliance Ventures investment funds for venture capital and support for start-ups;
– Environmental strategy aiming for carbon neutrality in 2040 in Europe and in 2050 worldwide: objective of a range of all-electric private vehicles in Europe in 2030 via €23 billion in investments by 2027 and 5 common platforms / circular economy the mobility supported by the Flins factory;
– Positive product mix effect for turnover with the launch of Arkana, Jogger and Mégane Electric;
– Towards the spin-off of electrical and software activities, which would be listed on the stock market, and thermal traction activities.
Challenges
– Impact of the lack of semiconductors: loss of 300,000 vehicles in 2022;
– Impact of raw materials inflation offset by trade policy;
– Impact of the Russia-Ukraine war: net loss of €2.3 billion from discontinued activities but reduction in debt;
– Operational launch of Mobilize, bringing together mobility, energy, financing, insurance and maintenance services, targeting 20% of sales in 2030;
– After stable turnover and a tripling, excluding Russian impact, of net profit on 1
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half-year, 2022 objectives revised upwards: operational self-financing of +€1.5 billion and operating margin of +5%.
A paradoxical performance
Data from the firm EY highlights that the performance of the world’s top 16 manufacturers was particularly high in 2021. While the average margin fell for three years in a row, going from 6.3% in 2017 to only 3.5% in 2020. , this margin stood at 8.5% in 2021. This level constitutes a record for ten years. However, the context was particularly turbulent for manufacturers, faced with unprecedented shortages of components. Global sales fell by 14% in 2020, the year of the health crisis, to rebound by only 5% in 2021. However, last year, players were able to reap the benefits of their efforts on the structure of their fixed costs .