Renault aims to become the second largest automaker in sales in Europe after Volkswagen by 2017. Renault Europe boss Stefan Mueller said one of the ways to do that is by increasing profitability. In 2017, Renault wants to achieve a 5 percent operating margin on a €50 billion turnover.
“We are rejuvenating our lineup with the Clio and Captur. We have done very well with them. We also are introducing higher-margin models such as the new Trafic van and the new Espace. We will need other products beyond these four cars to achieve our profitability,” Mueller said in an interview with AutNews Europe.
The executive added that Renault also expects Dacia to be No. 1 in its entry-level category in 2017, although the company doesn’t see its budget brand achieving similar levels of growth each year as in 2013.
Asked about the Twingo and its low profit margin, Mueller admitted that it is not a high-margin car. “We will still earn money with it. The 500 is a competitor, but there are a couple of cars in that segment. I would like to see the Twingo in the No. 2 spot in this segment. But we won’t do anything just for the sake of volume,” he said.
Renault Europe’s boss said the Twingo’s RWD architecture will not be marketed as a stand-alone feature, “but as an integral part of making the car bigger inside while still being 10cm shorter.” Commercials will also focus on the car’s higher seating position and its turning radius, which is tighter than any other little five-door car.
By Dan Mihalascu
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