The recently appointed new CEO of the Renault Group, François Provost, gave his first international press interview recently at the IAA in München. His central message was clear: EU legislators should focus on reducing the cost of BEVs, rather than forcing manufacturers to sell significantly more of them.
The Frenchman was recently named CEO of the French car giant, succeeding Luca de Meo, who left suddenly for luxury holding Kering, but was instrumental in implementing a recovery plan that involved reviving several iconic Renaults as small EVs and restructuring the entire company.
Continuity
The professional, slightly conservative, and discreet Provost might seem a sharp contrast with the sharp-suited, flamboyant predecessor, de Meo. Still, they are similar in how they answer questions: Provost also speaks with a brisk directness and a pleasant candour, not so different from de Meo.
“I’m a continuity man,” he says. “Our central task is to promote the Renaulution plan – introduced by de Meo in 2021, editor’s note –, to build a strong line-up in Europe and then to renew it. Of course, we must be ready to react if internal factors change, but we have the Ampere and Horse divisions to help with that.”
Chinese threat
When it comes to dealing with the Chinese model offensive in European markets, Provost pointed to Renault’s attempts to speed up its model development to less than two years and added: ”We are also capable of powerful and emotional designs, something we already proved.”
“We are better at this than our competitors, especially the Chinese. We are also busy improving our customer engagement: we respect our dealers and we aim to bring our own special values to the customer experience.”
‘2035 is not the focus’
When asked about the EU CO2 targets and the surrounding controversy, Provost provided a thoughtful response. “We should not focus on 2035,” he said, “even if it makes a nice hook for headlines in the media.”
“The fact is that EV prices now are far too high for people, and because of that, we are producing more carbon than we need to. We must make it clear that the industrial logic in Europe is wrong. What is needed is less regulation, which would allow car prices to be more affordable. Technological neutrality that pushes EVs forward should be the way.”
Asked how he will push that message, Provost said: “First, I will focus on what I can control, so I’ll keep working on costs. Then I will go to the European authorities with my colleague CEOs to enhance their sense of urgency.”
“They should know that the job of stimulating the EV market cannot fall on car manufacturers alone: as well as the wrong European logic, we have issues with charging infrastructure and the price of electricity across Europe.”
Value over volume
Like his predecessor, Provost makes it clear that he believes in pursuing value over volume in car sales, in stark contrast to Carlos Ghosn, the former head of the company, whose vision was to produce up to 15 million cars with the Alliance (Renault, Nissan, Mitsubishi) by 2030.
It raises the question of how Renault will cope with new-car discounting, which is rising across Europe, especially with the Chinese adding to the pressure. “We will follow the market,” he said, “but without doing anything crazy. Again, this is why I continue to push on reducing costs…”
Continue in Formula 1
François Provost also commented on the plans in the Formula 1 sports competition. The firm’s Alpine-branded Formula 1 team, which will switch from using Renault-built to Mercedes powertrains next year, is safe despite its recent struggles.
“We will stay in F1,” Provost affirmed. “We have good contracts and good sponsors, and I believe we have passed a tipping point. That’s not to say we are about to start winning, but I believe we now have stable management and a good power unit from Mercedes. I think we now have a chance to do better.”
