Renault Targets Revenue of EUR70 Billion in Six-Year Plan

By Max Bernhard Features Dow Jones Newswires

Renault SA (RNO.FR) targets revenues of more than 70 billion euros ($82.1 billion) by 2022, according to the strategic six-year plan the company published Friday.

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The French car maker said it expects volumes to grow by more than 40% to 5 million units by the end of its 2017-2022 plan compared with the 3.5 million units it sold in 2016. By the end of 2022 the group aims to reach an operating margin of more than 7%, said Renault.

Renault plans to save EUR4.2 billion from now until 2022 as part of its Monozukuri manufacturing system, a strategy adopted from Japanese car makers. The strategic plan also includes research-and-development investments of EUR18 billion over the six years.

The company said it aims to develop mobility technology such as ride-hailing and robo-taxi services, while it also plans to produce eight pure-electric vehicles.

Renault added that it aims to expand its presence in Russia and take advantage of market opportunities in Brazil, India and Iran. It said it sees opportunities in China with its new joint ventures.

Write to Max Bernhard at Max.Bernhard@dowjones.com; @mxbernhard

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(END) Dow Jones Newswires

October 06, 2017 03:27 ET (07:27 GMT)