French automaker Renault on Thursday hiked its cost savings target by 500 million euros ($608 million) to 2.5 billion euros by 2023, and set goals to gradually ramp up margins as it focuses on launching more profitable cars, Trend reports with reference to Reuters.
In a wide-ranging strategy update under new Chief Executive Luca de Meo, the company said it would cut the number of vehicles produced, reducing its spending on research and development as a result, and simplify manufacturing processes.
Renault said it was targeting a 5% group operating margin by 2025. It has yet to publish margins for 2020, though following the COVID-19 pandemic which disrupted operations, they are likely to be lower than the 4.8% hit in 2019.