Renault is continuing to mull over the possibility of spinning off its electric car unit into a separate business.
The French car manufacturer has been thinking about the move for quite some time and speaking during its annual general meeting, Renault chief executive Luca de Meo said the current idea is to create two separate entities, each with approximately 10,000 employees. He believes that such a move would “correct the group’s valuation.”
“All of the research and studies that we have done have already confirmed the very strong potential of this operation,” de Meo told shareholders. He acknowledged that “all options are still on the table.”
Renault’s EV operation could be centered in France whereas its internal-combustion operations would be based at overseas sites where many of its non-electrified vehicles are already built. These include facilities in Spain, Portugal, Turkey, Romania, and throughout Latin America.
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De Meo’s statements come shortly after the French car manufacturer apparently received several partnership proposals for the combustion-engine business it could create alongside an EV business. If Renault were to bring in partners on its combustion-engine side, it could raise funds for its EV expansion.
Auto News reports that Renault could look to hang on to a 40 per cent stake of its ICE business while retaining majority ownership of its electric division. It is possible the EV business could be listed via an IPO in the second half of 2023.
Renault’s interest in separating its ICE and EV businesses comes shortly after Ford announced it is doing the same, establishing Ford Blue to take stewardship of vehicles like the F-150, Bronco, Mustang, and others, while Ford Model e will focus on the company’s electric vehicles, platforms, software design, and the development of new technologies.
