Renault Reevaluates Mobilize Strategy Amid Profit Prioritization

Renault is restructuring its Mobilize unit, halting car-sharing services and decelerating fast-charging station deployment to focus investments on more profitable options. The reorganization will affect around 80 positions while the company scales back its charging network goals. Mobilize was initially created to explore innovative mobility solutions beyond traditional car manufacturing.

Renault is strategically realigning its Mobilize unit, which emphasizes novel transport solutions, aiming to enhance investment returns by winding down certain services. This includes ceasing car-sharing services and slowing the deployment of fast-charging stations, a tactical shift confirmed by the company on Friday.

The restructuring will affect approximately 80 out of 450 positions within the Mobilize Beyond Automotive division. Renault is offering voluntary departures and repositioning of employees internally. The company will discontinue other projects, such as Zity car-sharing in Milan and Madrid, which hold limited profitability potential.

Mobilize, initiated in 2021 by former CEO Luca de Meo, sought to broaden Renault's mobility offerings. However, current CEO François Provost has reconsidered the strategy, noting that heavy investments in rapid-charging infrastructure conflicts with existing financial constraints and industry challenges. Instead, Renault will curtail its network expansion goals, planning fewer charging stations than previously hoped.

(With inputs from agencies.)