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Renault will be divided into five specialized businesses. – Dubai Car News

key points

  • Renault will split into five unique operations to improve profitability and competitiveness.
  • Splitting the ICE and EV teams is a key strategy.
  • Analysts worry about complexity.
  • Questions were raised on the future of the Nissan alliance.

Renault CEO Luca de Meo has announced that the French carmaker will split its operations into five independent businesses on the eve of its investor day.

Key to DeMeo’s strategy is to split internal combustion engine (power) and electric vehicle operations (amperes). In addition to separate units for sports cars (Alpine), recycling and mobility (Future is neutral), and financing (Mobilize) will emerge.

Renault says it aims to increase profits, improve efficiency and better compete in the industry through separate businesses – each with its own CEO and profit and loss accounts – and specialized teams that work with external partners and Benefit from investors.

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power – Combustion engine arm – will partner with Chinese auto giant Geely in a 50-50 joint venture, while the electric business Ampere It has already partnered with computer chip maker Qualcomm and Google for Android automotive tech in the car.

“Renault hopes to win medals in these different sports rather than being average across all five,” Di Meo said.

About its current alliances with Nissan and Mitsubishi, insiders said Reuters That Nissan is wary of sharing its technology with many outsiders such as Geely, which also owns indirect rivals Volvo Cars, Polestar and Lotus.

But, DeMeo said it would give the partnership a new perspective, and like a marriage, “we need to have our own hobbies and our own lives.”

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However, analysts are concerned with the move as unclear and potentially adding to complications.

“The separation of combustion engine/electric operations is critical to the investment case, but splitting into five different units … introduces unnecessary complexity for governance and valuation,” said Philippe Hochuis, an analyst at Jefferies.

Romain Gillet, auto analyst at S&P Global, noted that there was a lack of clarity on where cross-business operations – such as human resources and customer support – would fall within the five individual businesses.

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In March, Ford announced a similar restructuring to create two new divisions – Ford Blue for combustion engines and Ford Model E for electric vehicles – similar to Ford Pro, which handles commercial and government vehicles in the US. What did

Companies like Volkswagen, Mercedes-Benz and Stellenbosch won’t have separate EV entities.

Renault is preparing to release the second-generation Renault Kangoo E-Tech light commercial van and Megane E-Tech small crossover EVs in Australia next year through independent distributor Ateco.

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