Renault expand its mid-term sales and wages targets as part of the automaker’s plan to protect its initial lead in battery-powered autos and keep rate with counterpart in driverless models.
Renault will raise annual income through 2022 to more than their previous target of 70 billion euros ($82 billion) and its edge that year will surpass an earlier forecast of 7 percent of sales.
The company dish out eight pure electric models and 12 electrified vehicles in the period.
“This new strategy will release our full potential to innovate and grow in a rapidly changing industry,” CEO Carlos Ghosn said in a statement on the car maker’s business plan.
Renault and long-time partner Nissan Motor are working tirelessly to defend an early advantage in electric cars as Tesla rolls out the lower priced Model 3 and Volkswagen Group plans a 20 billion-euro push into making electric Vehicles for the masses.
While the Renault-Nissan association sold the most battery-powered vehicles in the industry to date, the advantage has equal to little among tepid consumer demand.
Renault is constructing a plan outlined three weeks ago with Nissan and fellow Japanese partner Mitsubishi Motors to bring out 12 purely electric vehicles by 2022 as well as at least one fully automated model.
Renault set out the 2022 financial goals in February.
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The initial income target amounted to an increase of more than 37 percent from last year, when the operating margin was 6.4 percent of sales.
Last week, Citigroup analyst Mike Tyndall called those objectives “cautious.”
Even so, the car maker faces many trouble, including price pressure in some markets as customers oppose the cost of new technology, particularly to meet secure emissions quality.
The industry move to battery-powered cars is being pushed by increased regulatory inspection following Volkswagen’s diesel-emissions scandal and government efforts to lower air pollution by phasing out combustion engines.
While Nissan and Renault together lead the battery-powered section with their respective Leaf and Zoe cars, auto buyers have opposed EVs because of limited ranges and massive prices.
The automaker, which started making cars last year in China with Dongfeng Motor, set up a joint enterprise with that company and Nissan in mid-2017 to build an electric model.
It also agreed in July to buy almost half of Brilliance China Automotive Holding’s minibus unit.
Ghosn said in September that global car-industry growth will come mainly from China, India and Southeast Asia.
Renault is the first of the three association partners to publish its 2022 business plan. Nissan will disclose its program on Oct. 16, and Mitsubishi will release its strategy two days later.
Renault posses 44 percent stake in Nissan, while Nissan keeps 15 percent of Renault.
Mitsubishi joined the alliance last year, when Nissan bought a 34 percent holding.