(Bloomberg) — Renault SA set targets to expand its Mobilize car-sharing business as the struggling French automaker tries to close a chapter on operations in Russia.
The brand, which currently generates losses, is to achieve double-digit margins for each category of services by 2027, the carmaker said Tuesday.
Renault is sticking to its goal for Mobilize to make up a fifth of group revenue by the end of this decade.
Renault is focusing on new business areas as it faces fierce competition selling mass-market vehicles and challenges exiting Russia, its second-biggest market.
In a sign of potential deeper changes to come, the automaker also announced on Tuesday closer cooperation with Chinese auto giant Geely Automobile Holdings, which is buying a 34% stake in Renault’s Korean unit.
Read more: Renault, China’s Geely Deepen Ties With Korean Stake Deal
Chief Executive Officer Luca de Meo is under pressure to make good on targets to improve margins and cut costs, while facing a slump in European car sales and competition from rivals to roll out new electric vehicles.
Read More: Stellantis to Buy Mercedes and BMW’s Car-Sharing Venture (1)
Renault’s financing arm RCI Bank and Services is changing its name to Mobilize Financial Services and aims to have a fleet of 1 million vehicles for leasing and 200,000 for subscription in 2030.
By that same year, Mobilize is to raise the number of installed EV chargers to 165,000, from 22,000 last year.
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