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AI, "industrial metaverse"... How Renault is banking on technology to cut costs

2023-12-07T06:56:52.139Z

Highlights: AI, "industrial metaverse"... How Renault is banking on technology to cut costs. Industrial costs should be reduced by 50% in electric vehicles and 30% in thermal energy by 2027. Renault's 12,000 connected industrial equipment around the world "transmits" two million pieces of data every minute and three billion per day. Renault says it has saved €270 million in 2023 thanks to the " industrial metaverse" by using digital data for predictive maintenance of facilities. The group's objective is to reduce the energy consumption of its industrial sites by 40% by 2025.


Industrial costs should be reduced by 50% in electric vehicles and 30% in thermal energy by 2027.


Renault will close the third and final chapter of its recovery plan, called Renaulution, with a serious cut in its industrial costs. The manufacturer has just announced that it aims to reduce its production and logistics costs per vehicle by 30% on combustion engines and 50% on electric vehicles by 2027.

This plan should also contribute to reducing the development time of vehicles from three to two years. This reduction should allow it to remain profitable and competitive, particularly in the production of electric vehicles, which is burdened by an additional cost of 30% to 40% because of batteries.

To achieve this, Renault is counting on the increased digitalization of its entire industrial system, in other words the use of data throughout the production chain.

"Industrial Metaverse"

According to the group, Renault's 12,000 connected industrial equipment around the world "transmits" two million pieces of data every minute and three billion per day. Renault says it has saved €270 million in 2023 thanks to the "industrial metaverse", i.e. by using digital data for predictive maintenance of facilities.

The connection of all workstations and the entire supply chain (transport, suppliers, etc.) should also enable it to reduce vehicle delivery times by 60% and halve the carbon footprint of its vehicle manufacturing. Artificial intelligence is also used in quality control.

Read alsoRenault aims for the top for its Alpine brand

Reducing industrial costs also means reducing energy consumption. The group's objective is to reduce the energy consumption of its industrial sites by 40% by 2025.

All of these cost reductions, which have not been quantified, should help the group meet its financial objectives. Luca de Meo, Renault's chief executive, has promised that the group's operating margin will be above 8% from 2025 and 10% in 2030. Last October, Renault's executives reaffirmed that the group should reach a margin of between 7 and 8% this year.

Source: lefigaro

All business articles on 2023-12-07

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