Renault wants to earn €2.3 billion in 2030

Like other manufacturers, Groupe Renault is completely transforming its structure to adapt to the new market reality and prepare for a future in which the electric, autonomous and connected car will be the norm. For this reason, on November 8 it will announce the division of its business into two independent entities, one for electric cars and the other for thermal models.

The first of these will also include its new mobility company Mobilize, which develops PBV (Purpose Built Vehicles) and offers all kinds of services ( car sharing, charging…), as well as it’s software department. Another sector that the French group wants to explore is the circular economy, a niche that will gain enormous weight in the industry over the next few years.

Thus, Renault has confirmed the creation of a new circular economy unit with which it aspires to achieve profits of more than 2,300 million euros by 2030, all with an operating margin of 10%. The diamond firm is already looking for investors to co-finance the 500 million euros of planned spending.

This new division will not only make the company even more sustainable but will allow it to create a new business based on the remanufacturing of vehicles (which will then be sold again or offered through carsharing or subscription services) and the recovery of key raw materials.

The Renault Group will build several Refractories

Thus, the recycling of batteries will reduce Renault’s dependence on the external supply of materials, subject to geopolitical tensions. Luca de Meo, executive director of the company, does not rule out that Nissan will later invest in this new unit as part of the deep restructuring planned for the Renault-Nissan-Mitsubishi Alliance.

Renault Zoe

“In the face of the climate challenge, new regulatory requirements, and increasing pressure on resources, the mission is to offer circular recycling solutions to the industry. Our ambition is to bring recycling into a new era and become the European leader in the automotive circular economy,” de Meo said in a statement.

At the moment, Renault plans to build two Refractories: one in Flins (France), where the ZOE electric utility vehicle is currently assembled; and another in Seville (Spain), specialized until now in the production of gearboxes. These types of facilities, similar to those recently announced by Toyota, will be vital to achieving Groupe Renault’s goals.

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