Renault rumoured to spin-off electric car business
Renault is apparently exploring a possible spin-off and IPO of its electric car business, according to media sources. Renault management is said to be exploring the possibility of splitting the company into two entities for the internal combustion and electric car businesses.
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Details of the possible plan were revealed by top executives including Chief Executive Officer Luca de Meo and Chief Financial Officer Thierry Pieton during a meeting with analysts last week, according to a report by Bloomberg Quint. The publication reports that a possible restructuring of the company had already been touched upon in February. According to Bloomberg, analysts wrote in a note on the meeting that the management team continues to conduct exploratory work with respect to a possible split of the company into two units.
This could mean that the internal combustion and hybrid vehicle business might be merged with that of a potential partner outside France. The purely electric activities and technologies could be bundled together with the business of the mobility brand Mobilize in a separate unit in France. An IPO of New Mobility’s assets could be considered for 2023. Renault declined to comment to Bloomberg.
Renault is not the only carmaker considering such a move. Ford recently announced that it would separate its car business into two separate companies for electric cars and combustion cars. Electric vehicles will in future be developed and built by “Ford Model e”, the combustion cars by “Ford Blue”. Hereby, will Ford’s European boss Stuart Rowley get a new job in the course of the restructuring.
Update 13 April 2022
Meanwhile, Luca de Meo has confirmed the gist of the rumours. “This could mean a separate listing. This is a conditional, this is precisely what we are reviewing,” de Meo said at a press conference. The plan to separate the internal combustion engine activity could interest Nissan or long-term investors. However, the Renault boss did not give figures.
bloombergquint.com, reuters.com (update)