Name: Insights: How Renault Is Navigating Disruption In The Auto Industry
Uploaded: 2020-03-11
Duration: 5 min 36 s
Description: Groupe Renault has one mission: to provide sustainable mobility to the world. (November 2019)

[MUSIC PLAYING] - We've been talking a lot here over the last 48 hours about climate challenges and decarbonizing the economy. Renault, of course, was out there way early with the electric vehicle. I mean, I remember interviewing Carlos Ghosn a decade ago when he predicted, I don't know, what were the numbers? 10% of all cars would be electric vehicles by now. - Yes. - And so what happened? I mean, was it a mistake to be out in electric vehicles so early? - Well, it was clearly not a mistake, because what we see today is that electric is the future. We strongly believe that the future is electric, connected, autonomous, and shared, so he was right. Maybe, right a little too early, but he was right nevertheless. And today, we benefit from this early move. Renault and the alliance has been pioneer in electric vehicles. Renault, last year, had a 22% market share in Europe in electric vehicle. And if you look at the alliance, the alliance has more than 700 cars on the road, which are pure electric. - Do you make money on those cars? - We start to make money on those cars. Some money. - Well, I mean, you either make money or you don't make money. - No. Some of these cars. If I look at our utility vehicles, we make money. If I look at Zoi in France, in Germany, we make money. It's not globally positive yet, but we're very close to it. - So in your strategy review, you won't pull back your commitment to electric. - No. On the contrary. Just like any other carmaker, we're fully bullish on electric vehicle. We think it's the future. It's clean. It's silent. It can be very used for car sharing. So it's really the future. - What has to happen to make it both popular and profitable? - For the profitable part, it's very easy, you need volume as always. You need volume, you need skill, you need progress in the battery technology. This is just normal stuff I would say in the car industry, skill and additional technology. Now, in order for that to be possible, we need to convince customers, because it's easy to push, but you nevertheless need to have customer. Unfortunately, in the car industry, you have to sell vehicles. And to sell vehicles, we need customers. And customers are starting to believe in electric vehicle. Once you've tested it, you can't get away from it. For the Zoi customers, 95% of the Zoi customers say they would never go back to anything else but electric vehicles. So it's amazing. But then you need to progress on the autonomy of the car. Today, you have to obstacle, I would say, to electric vehicles. The first one is the autonomy. People are afraid to get out of power in their cars. So they need to be reassured on that. What do we need for that? We need three things. We need better battery. I mean, higher range in terms of battery. We need charging station, and for that, we need the help of the States and some public authorities. And we need faster charging, which is also something that we're working on. - Autonomous shared electric. You're doing all three. - And connected. Yes. - And you think the public's ready to make all three transitions at once? - Well, yeah. This is going to take time. Electric is already here. Connected is coming here. Shared is starting. Shared mobility, in 2015, you had 4% of miles, which were shared. Survey tell us that by 2030, 25% of miles will be shared. SPEAKER 2: Actually, that much shared bigger than electric. SPEAKER 1: No, because what we believe in Renault is that this shared mobility should be electric. SPEAKER 2: It should be electric. SPEAKER 1: And then in the future, then you have autonomous. But autonomous is going to take a little more time. We're working on it. We're partnering with Waymo on that front. And we strongly believe that in the future, you will have what we call robo-vehicles or driverless vehicles. AUDIENCE: Have you considered subscription models for your business? SPEAKER 2: Interesting. SPEAKER 1: Yes. We are making also some tests, thanks notably to RCI, which is our captive bank. For those who don't know, we have a captive bank which has 50 billion euro of assets. And we're making some tests about subscription model where you can pay a subscription fee and then you can have various cars along the year, depending on your needs. AUDIENCE: How many car companies can survive with 90% fewer cars sold? SPEAKER 1: I don't agree was this survey for the very good reason. First, some people will always need a car. If you're down in the middle of nowhere in France, in Morocco, in anywhere, I don't believe you're going to have shared autonomous vehicles at that stage. That's the first point. And the second, when you use those autonomous vehicle-- actually, that's very funny because we had that discussion was the CEO of Waymo last week. I mean, you are going to be using these cars so much that the lifespan of the car, instead of being seven years, is going to be two to three years. And then, OK, you're going to need less cars but you need to renew them more often. So yes, there might be an impact on the car industry, but not as massive as what survey used to say a few years ago. And by the way, I think they're also changing their mind on that. [THEME MUSIC] 

Insights: How Renault Is Navigating Disruption In The Auto Industry

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Renault wants to provide sustainable mobility to the world.

How Renault Is Navigating Disruption In The Auto Industry

Groupe Renault has one mission: to provide sustainable mobility to the world. (November 2019)

We've been talking a lot of your over the last 48 hours about climate challenges and di carbon izing the economy where no, of course, was out there way early with the electric vehicle. I mean, I remember interviewing Carlos going a decade ago when he predicted, I don't know what what were the numbers? 10% of all cars would be electric vehicles by now. And so what happened? I mean was Was it a mistake to be out in electric vehicles so early? Well, it was clearly not a mistake, because what we see today is that electric is the future. We strongly believe that the future is electric connected, but no more. Sorry and shared. So he was right. Maybe right oil too early. But he was right nevertheless, and today we benefit from this early move. Ronel and the Alliance has been pioneer in electric vehicle. Reynold last year had a 22% market share in Europe in electric vehicle. And if you look at the alliance and the alliance has more than 700 cars on the road which are pure electric, do you make money on those cars? We start to make money on those cars way sort of either make money or, you know something. Some of these cars. If I look at our utility vehicles, we make money. If I look at you in France and Germany Winnick money. It's not globally positive yet, but we're very close to it. So in your strategy review, you won't pull back your commitment to hello on the country. Just like any other car maker were fully bullish on E electric vehicle. We think it's the future. It's clean. It's silence. It can be very usually used for car sharing. So it's it's really the future. You know what, what has to happen to make it both popular and profitable. Yeah, For the profitable parts, it's It's very easy. You need volume. As always, use volume. You need scale. You need progress in the battery technology. This is just normal staff. I would stay in the car industry scale and additional technology. Now it's in order for that to be possible. We need to convince customers because it's easy to push, but you nevertheless, to have customers. Unfortunately, in the car industry, you have to sell vehicles and to sell vehicles. We need customers and customers are starting to believe in electric vehicle. Once tested it you you can't get away from it. For the Zoe customers, 95% of the DUI customers say they would never go back to anything else with electric vehicles. It's amazing, but then you need to progress on the autonomy of the car today. What is you have to obstacle? I would say to electric vehicles. The 1st 1 is the autonomy. People are afraid to get out of power in their cars, so they need to be reassured on that. What do we need for that? We need three things we need. We need better battery. I mean higher wrench. In terms of battery, we need charging stations. And for that we need the help of of the states and some public authorities. And we need factor charging, which is also something that we're working on. Autonomous, shared electric. You're doing all three of them and connected. And you think, Oh, you think the public's ready to make all three transitions at once? Well, yeah. This is gonna take time. Electric is already here. Connected is coming here. Shared is starting on the shared mobility into 15 You had 4% of miles which were shared. Survey tell us that by 2030 24 25% of Maya will be shared. That actually that might shared bigger than electric? No, because what we believe in Reno is that this much shared mobility should be electric, should be work. And then and then in the future, then you have enormous. But it's gonna take a little more time. We're working on it. We're partnering with Ueno on that front. And we strongly believe that in the future you will have what we call robo vehicle or driver less vehicles. Have you considered subscription models for your business? Interesting. Yes, we're making also some tests, thanks notably to Air Sea I, which is our bank captive bank. We have Ah, for those who don't know, we have ah, captive bank, which is 50 billion euro of active. And we're making some tests about question model where you can pay a Christian. She and then you can have various cars along the year, depending on your needs. How many car companies conserve? I've with 90% fewer cars sold. I don't I don't agree with this survey for the very good reason. First, some people will always need a car. If you're down in the middle of nowhere in France, in miracle, in anywhere, I don't believe you gonna have shared autonomous vehicle at that stage. That the first point and the second when you use those autonomous vehicle. Actually, that's very funny, because we had that discussion with the off way more last week. I mean, you are gonna be using these cars so much that the life span in the car, instead of being seven years, is going to be 2 to 3 years and then okay, you're gonna need less cars, but, you know, you need to renew them more often. So, yes, there might be a new impact on the car industry, but not as massive as what serving used to say, a few usable. And by the way, I think they're also changing their mind on that