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Alpine’s revolution is underway

Itumeleng Garebatshabe
Last updated: June 28, 2023 14:12
By Itumeleng Garebatshabe
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The “Renaulution plan”, launched by Luca de Meo, CEO of Renault Group, has given the iconic French sports car brand a tremendous outlook. Its strategy was outlined on Monday, June 26 by Luca de Meo and Laurent Rossi, CEO of Alpine, and the Alpine management team at a press and investor field trip, at the Alpine F1 Team site in Enstone (UK).

Contents
From Renaulution to RevolutionRamp up Alpine’s transformation backed by leading partners in their fields

Relaunched in 2017 with the A110 and following a 2021 reorganisation as a Business Unit, Alpine is gearing up for a new growth phase. The launch of its new 100 % electric models from 2024 will enable the brand to boost its revenues so that it can be at break-even from 2026. From 2027, a world expansion phase will begin, backed by a line-up tailored to new markets including the USA, that will help improve Alpine financial performance and brand value.

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Alpine confirms ambitious goals:2022 to 2030 compound annual growth rate of 40 % (revenue).Break-even operating margin and €2 billion revenues in 2026.Above 10 % operating margin and constant revenue increase over €8 billion revenues (including €1 billion assuming the brand will be launched in China) in 2030.A 100 % electric car range by end of 2026 and net-zero carbon production in 2030.

From Renaulution to Revolution

“Alpine is the brand for motorsport and state-of-the-art technology enthusiasts. Excellence is its focus. Only two years ago, Alpine was in a dead-end, lacking clear perspectives. Since then, we have turned it into a fully-fledged car manufacturer, bringing together outstanding assets: a top-class engineering center, a unique manufacturing know-how, expanding distribution network. On top of it, Alpine’s entry into F1 prepares it to reach new heights, offering the brand the prestige and recognition attached to the pinnacle of motorsport”, explains Luca de Meo, Renault Group CEO.

2022 Alpine revenues hit a record, up 33 % vs 2021. Nearly 7 years after launch, the A110 is the most sold sports car in France and features among the top 5 sports cars in Europe. In 2022, the 3 limited editions (the A110 GT J. Rédélé, the A110 Tour de Corse 75 and the A110 R Fernando Alonso) were sold out in just 30 minutes. The total orderbook stands at 7 months and sales are expected to exceed 4,200 units in 2023.

The total number of sales outlets has doubled in barely 2 years to 140, as of 31 December 2022. Alpine has forged partnerships with RedBird and AutoNation in the USA, bearing out its attraction in a country where the brand has major ambitions. What is more, the brand has entered the top 150 most valuable brands in France for the first time and is now worth €550 million.

Launch of 7 new models by 2030 to support Alpine growth

Born from racing, Alpine needs to rise to many challenges including turning to 100 % electric. To do so, it can tap into the broad array of expertise of its technicians and engineers, who are in the top rank of the world’s motor racing specialists.

First, Alpine will draw on its “Dream Garage” made of 100% electric models as follows:

  • The future electric, sporty and urban A290 (B-segment car based on Renault 5 and Renault 4 CMFB-EV platform), for which the show-car was unveiled in May, is expected as from 2024.
  • The C-segment Crossover GT, in 2025, that will be manufactured in France at the Manufacture Alpine Dieppe Jean Rédélé plant.
  • The all-new A110, Alpine’s heritage and know-how flag-bearer, will be 100 % electric by end 2026.

The A110 E-ternité prototype has served as a trial run demonstrating that Alpine has the capacity, and it is cost-beneficial to develop its own platform, which will mean it can offer cars true to its sportiness and agility DNA. The APP (Alpine Performance Platform) will also capitalise on the company’s internal resources to achieve economies of scale.

Underpinning the future electric A110, the APP is adjustable such that it can change length and width as needed. It will also be used for new cars including a ground-breaking A110-based roadster and the new A310, a 4-seat sports coupe.

Lastly, Alpine will launch two new D/E segment cars on top of its Dream Garage.

Apart from its APP platform, Alpine is developing proprietary technologies for its exclusive sports models like a hydrogen internal combustion engine or ADM (Alpine Dynamic Module), the central intelligence to enhance agility and performance within our electronic architecture.

“This comprehensive range of sports cars will cement our market share in our key markets in Europe and Japan. It will turbocharge our international growth, particularly in the USA and Asia, where our new models will be on sale from 2027. Our goal is to expand from a niche segment brand to a fully-fledged global brand. By combining a larger range with international expansion, we target an operating margin over 10 % by 2030, and thereby put our business model on a permanent footing,” explains Laurent Rossi, CEO of Alpine.

Ramp up Alpine’s transformation backed by leading partners in their fields

Alpine aims to create an ecosystem by surrounding itself with key partners to co-invent the sports car of tomorrow, led by Renault Group. Its APP platform will benefit from the SDV (Software-Defined Vehicle) expertise of Ampere, Renault Group’s future electric and software pure player. Mobilize Financial Services will allow Alpine to attract and lock-in its customers via bespoke financial services. Lastly, on top of its own sales outlets, the company can draw on Renault Group’s distribution network for its foreign sales. Other external partners will support it including Google to develop connectivity services and Verkor to supply high-performance made-in-France (Dunkirk) batteries.

Alpine strives to enhance its brand image to boost revenues, by stepping up exposure to motorsports like the 2024 World Endurance Championship, in which Alpine will compete as factory team in the top category Hypercar, and also in Formula 1, where it wants to increase licensing and merchandising revenues. To ramp up its transformation, Alpine will be partnering with new investors such as Otro Capital, RedBird Capital Partners and Maximum Effort Investments.

KEY FIGURES 
Alpine has close to 2,000 employees, 140 sales outlets and five design and manaufacturing facilitiesIn 2017, the Manufacture Alpine Dieppe Jean Rédélé plant (France), Alpine’s historic location with 343 employees, invested €36 million to relaunch the A110.Les Ulis (France), the Alpine Cars engineering centre, has 350 sports car experts spread over a 9,300 square-metre site.Guyancourt (France): a 45-staff design team work on the Alpine brand.Viry-Châtillon (France): 25,300 square-metres, 500+ experts give their unique engine know-how to serve motor racing – design, assembly, trials and more.Enstone (UK): the Alpine F1 Team factory developing F1 race cars with some 900 employees.
TAGGED:AlpineRenault Group

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Itumeleng is the Managing Editor of The Auto Magazine. He is a tech and car enthusiast

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