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Renault27 MayBusinessHigh confidence

Renault Group details Design-to-Cost strategy for cost-effective innovation

Development timeline target

<2 years

Kwid investment cost reduction

divided by 3

Potential savings from small component costs

millions of euros

What Happened

Design-to-Cost is a process that optimizes development and production costs from the earliest design phases through the entire project. It aims to balance performance, quality, and cost while meeting budget targets defined in the business plan. At Renault Group, this approach begins even before the first prototype is built, involving upstream market research, product positioning, and customer expectations to define a clear technical and economic trajectory.

The starting point is not what it costs, but what it will need to cost.
Patrick Faitout

The USFTs (Upstream Strategy Functional Teams) are central to Renault's Design-to-Cost ecosystem. These cross-functional teams bring together Engineering, Purchasing, and Costing specialists who work continuously, analyzing competitors, monitoring technological developments, and defining component strategies. By involving teams early, the company can modify components before tooling or production lines are set, reducing costs and enabling breakthroughs through co-development with suppliers.

Why this matters

This approach helps Renault launch competitive vehicles by managing costs upfront, enabling innovation while maintaining profitability in a rapidly evolving market.

Terms in This Story

USFT
Upstream Strategy Functional Team: a cross-functional group of Engineering, Purchasing, and Costing teams working to optimize technical and economic performance.
Kaizen
A Japanese term meaning 'continuous improvement' through small, incremental changes.
Costing
The function responsible for estimating and analyzing production and development costs.
Cross Car Line
A department that oversees cross-functional standardisation strategies to maximize component reuse across vehicle projects.
Read Original: Renault