News Analysis: Renault Faces Costs, Now and Later, on Russia Exit

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Although he focuses on compact cars primarily built on the Renault-Nissan Alliance’s CMF-C/D platform (as well as electric vehicles on CMF-BEV), de Meo outlined ambitious plans to a range of smaller cars built on the CMF-B platform which would be shared between Dacia and Lada.

One of de Meo’s first moves as CEO was to combine Dacia and Lada into a single unit that would share development and parts, under veteran Renault-Nissan executive Denis Le Vot.

As an example, the P13X project includes the new generation small Dacia Duster, the compact-sized Dacia Bigster, two Niva models for Lada and a Renault variant. Combined, the models would have an annual production of 1 million units, with 85% parts carryover, de Meo said. Automotive News Europe in an interview in February 2021.

By 2025, all Dacia and Lada models were to be on CMF-B platform versions (there are now five platforms between the two brands), with hybrid models introducing electrification. Body styles would be reduced to 11 from 18. Above all, the potential profit pool of the two brands is expected to grow from €3 billion in 2020 to €5 billion in 2025.

Still, any potential profit from the brand combination remains speculative, Houchois said in a note to investors. “Despite the recent merger of the Dacia and Lada brands into a new business unit, the extent of existing or expected synergies remains uncertain,” he said.

Instead, Houchois argued, the loss of operations in Russia could “accelerate a strategic overhaul” at Renault.

“Recent developments should rekindle concerns about Renault’s relevance to the transformation of the automotive industry and how best to use existing or new alliances,” he said, including ties with Nissan and a co-operation fledgling with Geely in South Korea.

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