Salem Radio Network News Saturday, May 28, 2022

Business

Renault sees a double digit margin for its Mobilize brand in 2027

PARIS (Reuters) – French carmaker Renault said it was targeting a double-digit margin for its new Mobilize brand, which proposes new solutions around mobility and data, and that ‘Mobilize’ would aim to represent 20% of Renault’s overall group turnover by 2030.

The company is counting on this new business to help turn around its finances. In February, Renault posted an annual profit for the first time in three years. But its sales fell for the third straight year in 2021.

As a sign of its upcoming importance in Renault’s strategy, Mobilize detailed its own mid-term strategy plan on Tuesday.

“Mobilize sells services, not vehicles, generating recurring income and reducing costs of usage for our customers. We have decided to cover the sections of the mobility value chain presenting the highest growth and margin potential,” said Clotilde Delbos, chief executive of the Mobilize arm.

The Mobilize brand is part of Renault’s electric vehicle strategy as it seeks to achieve carbon neutrality in Europe by 2040.

Earlier, Renault said it would sell just over a third of its Korea unit to China’s Geely Automobile Holdings for roughly $200 million, freeing up funds to invest in its lagging core markets and electric business.

(Reporting by Gilles Guillaume; Writing by Sudip Kar Gupta; Editing by Chizu Nomiyama and Benoit Van Overstraeten)

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