RENAULT
New CEO of the Renault Group strengthens partnerships to accelerate growth
After beginning his career at the French Ministry of Economy and Finance, François Provost joined Renault in 2002 and, between 2005 and 2008, took over the leadership of Renault-Nissan in Portugal. This was followed by Russia, South Korea, and China, and he was chosen to succeed Luca de Meo on July 30, 2025, as CEO of the Renault Group, which also includes Dacia and Alpine. In a particularly difficult period for European industry, Provost must maintain the course in electrification, improving efficiency and competitiveness to grow in the Old Continent, while pursuing increased sales in certain international markets, anchored in strategic partnerships. Participating in a roundtable discussion with the French manager allowed us to learn about the strategy that has led the group to this point, as well as whet our appetite for the news of the coming years, which will be announced on March 10th, at Strategy Day.
Provost began by pointing out that the goal is to continue growing in Europe, but also in South Korea and India. While in South Korea, whose drivers appreciate larger vehicles, they launched the Filante, a top-of-the-line SUV designed on a Geely platform, in India they launched the Duster, not as an affordable SUV, but as a more luxurious offering aimed at the country's growing middle class. The ambition regarding India is evident, where the group has a technical team of engineers working on product development and a factory to manufacture them, but South America has not been forgotten either, especially since Renault has manufacturing facilities in Brazil, Argentina, and Colombia. However, to attack the markets in the region, especially the Brazilian one, and to counter the growing presence of Chinese manufacturers, the French manufacturer has chosen to join forces again with Geely.
Asked if the Renault Group is large enough to invest what is needed in the global market, the new French CEO explained that "Renault only invests in markets where it is large enough to succeed," although he says he does not believe that "size alone is the determining factor for the group's success." Provost prefers to "bet on agility, speed of analysis and reaction capacity," which leads him to stay away from other Asian markets, including China, where "the level of investment is tremendous and for which we lack the size." As for Europe, South Korea and South America, the manager assures that "the Renault Group is the right size to face the competition and be competitive," these being the markets in which the brand intends to grow.
Asked about Geely's entry into the European market, Provost admitted that it is just another competitor they know well, since the Chinese group is one of Renault's partners in Horse, a division dedicated to manufacturing vehicles with combustion engines, hybrids, and plug-in hybrids, in which the French have as partners, in addition to Geely, the Saudi oil company Aramco. The partnership with Geely is active in the South American and South Korean markets, with Provost recalling that this association is specific to certain countries and welcoming the fact that the Chinese group has "a type of mentality and a business approach similar to ours." The combination is relatively simple, based on the fact that Geely has the platforms and Renault the necessary ecosystems, thus ensuring engineering and production infrastructure in the countries where they operate.
If there's one sector within the Renault Group that fills François Provost with pride, it's Ampere, the division responsible for the development and production of electric vehicles. The CEO points out that they are "the only non-Chinese manufacturer to have designed an electric vehicle from scratch in just 21 months," highlighting that "this proves the group's agility" and leads to a consequent reduction in costs. Provost admits that Ampere allowed the group to catch up with the competition that was more advanced in electric car technology, especially in relation to Chinese manufacturers. And, among the most tangible advantages, the manager highlights "the ability to change batteries in just 12 months," as well as "offering a second battery in all electric models with LFP chemistry and cell-to-pack technology," which makes them lighter, safer, and cheaper, in addition to being 70% more efficient.
According to the CEO, Ampere is also synonymous with progress in terms of software, an aspect that is increasingly valued by customers. "Ampere has allowed us to be the first in Europe to offer a Software-Defined Vehicle, in which it is the software and not the hardware that allows you to activate, manage and update its systems and functions," Provost highlighted, referring to the Flexis vans — designed in collaboration with the Volvo Group (trucks, work machinery and marine equipment) and the logistics company CMA CGM — which will give rise to the new electric Trafic, Estafette and Goelette vans, scheduled to start arriving on the market in the second half of 2026.
The Twingo project is another global example of technology developed by Ampere to generate competitive electric cars, which, in addition to Renault, Nissan and Mitsubishi are also using in their models, with Ford joining this group of customers of the French group, confirming the validity of the work carried out by Ampere. And, recalling that an Initial Public Offering (IPO) of Ampere was initially planned, the CEO confessed that "now that the decision has been made not to proceed with the IPO of Ampere, the plan is to adapt the mindset of this innovative company to the rest of the Renault Group."
The topic of the higher prices of electric vehicles compared to their combustion engine competitors was also discussed, with Provost admitting that "electric cars are indeed more expensive" and partly blaming the European Commission for this. "The obligation to install more and more safety and driver assistance systems continually raises the prices of new cars," he argues. And, to leave no doubt, the manager gives an example: "This over-regulation means that Europe will require the adoption of 108 more new systems and devices by 2030," which will further increase the production costs of new cars, as well as their price.
With a range of battery-powered vehicles comprising the Megane and Scenic, which in 2025 was reinforced with the introduction of the R5 E-Tech and R4 E-Tech and which in 2026 is preparing to house the Twingo, it was necessary to know whether electric vehicles are already a source of revenue for the French brand or whether, on the contrary, they are still unprofitable. François Provost clarified that "electric vehicles are already profitable, but not yet as much as models equipped with combustion engines." The head of the French group also stated, "without wanting to reveal secrets," that "the R5 E-Tech is more profitable than the Scenic launched just two years ago," recalling that "Ampere aims to reduce the costs of battery-powered models by 40%, with the objective of launching an electric vehicle on the market for the same price as a similar combustion hybrid model."
Regarding Europe's retreat from reducing CO2 emissions from engines sold in EU countries from 100% to 90%, opening the door for the continued sale of hybrid and plug-in hybrid models after 2035, especially those powered by synthetic or lower-carbon fuels, the CEO of the Renault Group expressed satisfaction that the European regulator has finally "realized the urgency in rectifying the regulations to prevent the decline of the European automotive industry." On the other hand, "the measures applied are insufficient," believes Renault, with its CEO agreeing with German automakers who argue that electric vehicles are not selling because there are not enough chargers available, which discourages potential customers.
Provost also supports the Germans' demands, who want the Commission to make life easier for larger cars with plug-in hybrid powertrains and high-capacity batteries, as well as vehicles with range extenders, where a small gasoline engine serves only to produce energy to be stored in the battery, which in turn powers the electric motor that moves the car. The French manager admits that it doesn't make much sense to equip large cars with 100 kWh batteries, which increases the weight to almost 3 tons, but for small and compact cars, batteries are already viable and competitive.
Renault Clio and Megane banned in Germany...The Germans have decided that some of Renault's best-selling models in the country are illegal. The court responded to a complaint from the American company Broadcom, but the French promise to fight back. Renault has the Clio and Megane as two of its most popular models among German buyers, but the issue now is not just the ban on selling these vehicles in Germany. Also on the table is the possibility that the French brand may have to repossess and destroy the models already sold, which could represent an even greater loss.
The issue arose when Broadcom, an American company specializing in semiconductors and software infrastructure, went to court accusing Renault of selling vehicles that infringe the law. At stake are its Ethernet patents, as well as the non-payment of what the court considered to be "a reasonable amount," according to the German press. Supporting the court decision is, specifically, Broadcom's EP1903733 patent, which is essential for the proper functioning of IEEE 802.3bw, one of the Ethernet standards. The Clio uses Ethernet to operate, among other things, its navigation system, which in turn uses Google's Android Automotive system, as well as maps from this tech giant.
The German court's decision mandates the end of sales of the two models, as well as the recall and destruction of units already sold, which will have a devastating effect on the French brand's finances. However, despite having already been announced, the ruling has not yet taken effect, as it will only have to be respected after Broadcom deposits several million euros in the court's coffers as a guarantee. And that deposit has not yet arrived.
Renault has already made it known that it intends to appeal the Munich judge's decision, stating that it categorically rejects the accusation. It remains to be seen whether the manufacturer and the chipmaker will return to the negotiating table — in the interest of both, but with emphasis on the French manufacturer. It's worth remembering that Broadcom's patents cover the entire world, so Renault's German problem could quickly become global and spread to hundreds of countries. Unless the manufacturer of the Clio and Megane has reason (and the law) on its side…
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