"Renaulution" 1: The future is electric

After presenting the figures for 2020, Renault Germany also invited to a question-and-answer session that was very enlightening. A clear statement from Managing Director Uwe Hochgeschurtz:

“Individual mobility will always exist. It remains the most important trend in society.”

However, it will be more electric, as could already be seen from the 2020 figures. Because with the rise of the Zoe in 2020, Renault was able to successfully fight against the pandemic, improve its market share, and despite the market entry of the VW ID.3, continue to be the top seller of electric cars in the German market. It was somewhat clear that especially the Mégane and vans had to take a hit – a fate shared with many other manufacturers who have similar models in their portfolios.

The current new gasoline engines are Euro 7 compliant, but…

That is why an electric Mégane is being launched by the end of 2021 based on the new alliance platform, which, according to Hochgeschurtz, will naturally deliver many more models – as Nissan has already proven with the Ariya. Additionally, there's the elaborate Euro-7 standard, for which the compact Renaults should also be compliant. Clear statement: Clio and/or Dacia Sandero are Euro 7 compliant, but: the share of electric vehicles will increase, which according to Hochgeschurtz is also a good thing, as the environment benefits maximally from it. Because the efficiency of an electric car is an unbeatable 70%. And since he is on a roll, the Renault Germany head, known as a cheerful Rhinelander, also argues with regional energy or electricity production, which is much better than elaborate and energetically questionable crude oil imports from partly questionable countries. Hochgeschurtz concludes in this context:

“By 2030, the majority of small and compact cars will likely be purely electric.”

Behind the scenes, Renault is precisely working towards this: In 2021, the Twingo electric, the Dacia Spring electric, the new Kangoo electric, and by the end of the year, an electric compact beside the Mégane will come to the market, thereby addressing the new electric CMF-EV alliance platform from the bottom up, while Nissan comes from the top with the Ariya. And: Dacia and Renault are to be more differentiated in the future, as is already being exemplified with the Twingo electric and Dacia Spring electric.

The CMF-EV platform fits the entire Renault lineup starting with the Mégane

And now let's boldly plan Renault's lineup further, which we would restructure as follows: In addition to the Mégane, we introduce an SUV that will retire the Kadjar, while we weave a large, spacious SUV with a lot of room for five or seven seats from the Espace, Scenic, and Koleos (which we already sampled in the Nissan) and offer the whole thing optionally as a coupé. We replace the Talisman with a sleek electric hatchback flagship with much higher efficiency and also a lot of space. And maybe we'll also find a way to somehow create a lightweight electric Alpine from CMF-EV – under 1.5 tons but quite powerful... and the first data of the Nissan Ariya suggest good values here.

If you ask Hochgeschurtz about the current combustion engine lineup, he's much less enthusiastic than about the Zoe, Twingo electric, and co.: Yes, hybrids and plug-in hybrids in the Clio, Captur, and Mégane achieved a market share of ten to twenty percent by the end of the year, but only this year can more reliable statements be made about their share within the model ranges. A subsequent internal Renault research revealed: The Clio now has a 12.5% hybrid share, and for Captur and Mégane, the plug-in share is even at 35% each at market launch. The new models only came to the market very late in 2020, which was additionally distorted due to the pandemic.

Hybrid and plug-in hybrid: Rather a transitional technology

When asked if plug-in hybrids and standard hybrids are just transitional solutions, Hochgeschurtz answers clearly: There must also be transitional technologies, and many customers still have range anxiety. With a plug-in hybrid, you can at least drive locally emission-free where it matters, in urban areas. But if you ask him directly: Yes, the conventional hybrid combustion engine is indeed a transitional solution, because:

“There is no alternative to e-mobility in the next 20 years.”

The Fuel Cell is Being Further Developed

And what about the fuel cell in commercial vehicles? Here, Hochgeschurtz asks for further research to have alternatives, but the energy balance is currently not comparable to battery electricity: it is three to five times worse. And if you really want to produce green hydrogen, it costs five times as much money as producing hydrogen with natural gas or methane. Therefore, Renault is likely to switch more and more to battery-electric versions for light commercial vehicles.

Nevertheless, a Memorandum of Understanding (MOU) has now been signed with Plug Power to establish a 50-50 joint venture based in France by the end of the first half of 2021. With this, the aim is to achieve a market share of over 30% for fuel cell-powered light commercial vehicles in Europe. The joint venture aims to establish state-of-the-art innovation and production capacities for hydrogen fuel cell systems and their integration into vehicles in France. The partnership will offer complete fuel cell vehicle solutions with hydrogen as fuel, including refueling infrastructures and services. Renault remains committed, because as mentioned, the future is electric – not just at Tesla, VW, and now also GM, but also at Renault!

What Does That Mean?

VW boss Herbert Diess is often criticized for his strong focus on the group towards e-mobility. But looking at the other volume and premium manufacturers, he is right: The 2020 sales figures speak a clear language: E-mobility is coming – and just as the Zoe is taking over from the Clio, the ID.3 will do the same for the Golf, or transferred to Renault: Clio, Mégane, Talisman, Scenic, and Espace are all likely to be replaced by fully electric alternatives by 2030, at least in Europe – with the CMF-EV skateboard, Renault has the right basis in hand for this.