Renault CEO Signals Strategy Reset to Get Carmaker Back on Track

Within a week of taking the helm, Renault SA interim Chief Executive Officer Clotilde Delbos called into question the strategic road map meant to carry the French carmaker through 2022.

In a video address to employees Oct. 15, Delbos said Renault will review the plan because the market has changed since it was unveiled two years ago.

“Unfortunately the situation hasnt improved during the summer and we need to put Renault back on track,” she said in the session viewed by Bloomberg News. “We need to adjust the strategy.”

Delbos isnt wasting any time after being named temporary CEO on Oct. 18 following the boards dramatic ouster of Thierry Bollore. By putting the six-year “Drive the Future” strategy under review, shes taken on part of the legacy of fallen leader Carlos Ghosn. At the same time, she may have burnished her own credentials as a contender to stay on in the top job.

“We need to make some choices,” Delbos said, pointing to Renaults negative cash flow in the first six months of the year and relatively high spending on research and development and investment. She also called for greater honesty and transparency within the company.

A spokeswoman for Renault declined to comment on internal company communication.

Ghosn unveiled the strategy with great fanfare in October 2017, pledging to expand Renaults global reach, deepen operational ties with Japanese partner Nissan Motor Co. and improve profitability. In parallel, the French carmaker would invest in electric and autonomous vehicles, he said.

Delbos told employees the plan might be too tall an order in the midst of a downturn in the global auto market. She was flanked by her two deputies, Jose-Vicente de Los Mozos and Oliver Murguet.

Still Smarting

Renault took a hit in the first half of 2019 from Nissans poor results and a slowdown in emerging markets like Turkey and Argentina. The French automaker owns 43% of the Japanese company, which is smarting from slumping U.S. sales and aging vehicle models.

While Renault cut its revenue target for this year, it stuck to its profit outlook. Delbos, who is chief financial officer, is readying to publish third-quarter revenue Oct. 25. MainFirst analyst Pierre-Yves Quemener expects the number to be marginally down at 11.4 billion euros ($12.7 billion) due to lower European and Renault-brand sales.

Delbos brushed aside the question of whether she wanted to remain CEORead More – Source