Renault to split into 5 units, spin off EV arm

STORY: Renault’s big restructuring rolls on.

The French automaker on Tuesday (November 8) announced plans to split its activities into five units.

It will spin off its electric vehicles unit - codenamed Ampere - with a stock market listing.

That should come next year.

And its combustion-engines unit will be housed in a 50-50 joint venture with a Chinese rival, Geely.

Other units will cover the Alpine sports car brand, financial services, and new mobility products.

Renault hopes the various moves will lift the sum of its value.

It also wants to drive a turnaround from health-crisis era losses, and aid its bid to catch newer rivals like Tesla.

For Geely, the deal builds on its strategy of forging partnerships to expand abroad.

It already owns Volvo Cars, and has a stake in Mercedes-Benz.

Renault’s talks with its existing partner Nissan remain complicated, however.

The two are discussing how to restructure a relationship long dominated by the French side.

Nissan could invest in Ampere, but Reuters sources say it has raised concerns over sharing technology with others, such as Geely.

Separately Tuesday, Renault said it was lifting its goal for profitability.

It’s now aiming for an operating margin of 8% by 2025, up from the 5% expected this year.

Renault shares were down 2% by lunchtime, with investors concerned by a lack of updates on the talks with Nissan.