Renault plans to spin off e-mobility business

Renault has now confirmed it has launched a strategic review in a spin-off of its electric car business – and provides more details. More specifically, a separate company in France could be dedicated to the development, production and distribution of electric vehicles and software.

This autonomous entity would have an economic model adapted to the specificities of electric cars and would be able to forge partnerships for new technologies and services – at least that is what Renault writes in a press release. At the same time, Renault is also studying the possibility of grouping its activities with pure thermal and hybrid cars into a separate unit outside France. Both companies could have around 10,000 employees in 2023.

Both companies are likely to remain members of the Renault-Nissan-Mitsubishi alliance, according to current opinion. “The objective of these strategic reflections is to adapt each technology, relying on the group’s strengths and expertise in its various markets and within the alliance,” he specifies.

The first reports of such plans came in early April, when executives such as chief executive Luca de Meo and chief financial officer Thierry Pieton reportedly pitched the possible plan to analysts. A little later, de Meo confirmed most of the rumors.

The move is primarily aimed at bolstering the electric car business – by 2030, the Renault brand must be pure electric in Europe. The French state is known to hold a 15% stake in the Renault group. Thus, it is important that the eventual electric car and software business is located in France, while it is explicitly stated that the combustion engine division should be located outside of France. It would also allow the e-division to access Renault’s industrial resources in France, such as the eMobility ElectriCity cluster in northern France.

As part of its “Renaulution” strategy, the automaker has begun to invest more in electric car supply chains. “Groupe Renault has made the strategic decision to locate the production of the main components of the e-mobility value chain in France, demonstrating its desire to develop high-tech activities in high-potential markets and to position itself as a leader in the electric car. in Europe,” the group writes.

On the future of the internal combustion division, she indicates that “given the innovative capabilities and significant improvements in terms of reducing emissions of this type of vehicle”, she is convinced that hybrid and plug-in hybrid vehicles “have significant long-term prospects and sales”. opportunities in Europe and on international markets”. Engine plants in Spain, Portugal, Turkey, Romania, Brazil, Chile and Argentina are then likely to be added to this division – as well as the corresponding development departments in Spain, Romania, Turkey and in Brazil.

However, Renault also stresses that these are still concepts. These are currently being discussed with employee representatives at group level and in the countries concerned. “The development of these strategic considerations will continue through social dialogue,” write the French.