Photo Credits: BWT Alpine F1 Team
Luca de Meo, CEO of Renault Group and Laurent Rossi, CEO of Alpine as well as the Alpine management team spoke this past Monday at its Alpine Future Tour. This was a press and investor field tripheld at the Alpine F1 Team site in Enstone. During a press conference which was broadcast online simultaneously, Alpine outlined their goals and ambition right through to 2030. The overall aim being to make Alpine a global brand in the same field as that of Nike – and their Formula One team appeared to be a key component of this ambitious plan.
In a press conference which lasted just over two hours (having included questions from the media), the ‘Renaulution plan’ first launched back in 2021 was reviewed by Luca de Meo, CEO of Renault Group. The manufacturer’s press conference took the shape as one would have expected. There were plenty of soundbites, eye catching graphics and celebration of the considerable growth of the last two years. The French manufacturer also confirmed 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.
“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,” explained Luca de Meo, Renault Group CEO.
In the hours preceding this press conference, Alpine had already announced that they would benefit from a €200 million investment from an Investor Group. The internet wasted no time in pouncing on the news that Michael B. Jordan, as well as Wrexham owners Ryan Reynolds and Rob McElhenney, would be part of this investor group and the celebrity status certainly represented the new direction Alpine intends to take. These groups are going to help the monetisation side of the business – not on the sport side. They are going to help boost revenue, hospitality and merchandising.
A key component of the global brand aim is to build on the ‘Incredible F1 Momentum’ as shown by one of the slides which featured a beaming Pierre Gasly in branded clothing facing a captivated set of fans. Alongside this was mention of ‘A favorable franchise context’ and headline figures: increasing F1 revenues; cost cap on chassis & power unit; increasing sponsoring revenues; 3rd party financial investments in F1.
Alpine is well poised to benefit from the momentum and highlighted its history with the next tagline of the presentation being ‘Alpine F1 built on solid foundations’. It cannot be forgotten that one of the main purposes of motorsport – none more so than in F1 – is to sell cars. The overall mindset being ‘the car crosses the finish line on Sunday is sold off the forecourt on Monday’.
In that respect things are certainly on the up at Alpine as shown by the data within its latest press release: In 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.
Motorsport is a key route for Alpine to enhance its brand image to boost revenues, by stepping up exposure to the 2024 World Endurance Championship, in which Alpine will compete as a factory team in the top category Hypercar, and in Formula 1, where it wants to increase licensing and merchandising revenues. Therefore, it was hardly surprising to see its final heading in the presentation was ‘Growing from niche to global brand’.
Alpine F1 team has two French drivers and already a podium to its name in 2023 after the success of Esteban Ocon around the streets of Monaco. The potential is clear for all to see but such aims will no doubt come with a high level of pressure.
“This year it’s a little bit complicated at the beginning of the
However, other teams are growing around Alpine and at present, the French manufacturer is P5 in the F1 Constructors’ Championship. This finds them already 78 points behind Scuderia Ferrari in P4 – the position claimed by Alpine in 2022. F1 is indeed experiencing its biggest popularity for many a year but other teams are well aware of that. Aston Martin has ambushed the top 3 this season and all this was achieved even before its state-of-the-art factory was fully unveiled. The challenge ahead of Alpine is clear and the ambition is admirable – but one can imagine they still have many mountains to overcome.
