New Renault boss outlines leaner, hi-tech future

More cost cutting is on the cards at French carmaker Renault.

It wants to focus on a smaller number of profitable models - forming part of a turnaround plan laid out by its new boss on Thursday (January 14).

Chief Executive Luca de Meo is trying to revive a business hammered by management turmoil and the health crisis.

In his first strategy update since taking over in July, he pledged to simplify manufacturing and rein in spending in areas like research.

Car production will be cut from 4 million in 2019 to 3.1 million units by 2025.

The plan is a marked departure from the ambitious one laid out four years by former boss-turned-fugitive Carlos Ghosn.

His strategy was built on growing car volumes globally - a plan critics say forced the carmaker to pursue size over profits.

"We grew bigger but not better," De Meo said during an online presentation on Thursday.

Renault wants half of its vehicle launches to be electrified versions by 2025.

De Meo also said Renault will move from being a car company working with tech "to a tech company working with cars".

On Thursday analysts at Citibank wrote in a client note:

"The greater details around how Renault moves on to a sustainable footing is also welcome given Renault shares continue to trade at a marked discount to peers."

The car maker's shares initially sank on Thursday, but were up around half a percent by mid morning.