Renault boss points to

Renault boss points to "very strong potential" of autonomous e-car unit

Renault's internal audits show strong potential for the carmaker's plans to break away its electric car division from its traditional fossil fuel-powered vehicle business, CEO Luca de Meo told shareholders.


He told Renault Group's annual general meeting that one outcome of the project would be to "correct the valuation of the group". However, he said the plan was not to split the company in half but to create two separate entities, each with about 10,000 employees.

According to the plan, the e-car business would be concentrated in France, while internal combustion engine vehicles would be produced at sites outside the country. "All the research and studies we have done have already confirmed the very strong potential of this operation," de Meo said, adding, however, that "all options are still on the table".

The carmaker had already said in mid-May that it wanted to improve its efficiency and operating performance by separating the electric car and combustion car divisions. This strategic thinking aims to treat each technology separately, drawing on the group's strengths and expertise in its various markets and within the Renault-Nissan-Mitsubishi alliance, he said.

Renault Group has strong ambitions for electric cars and aims to offer only all-electric passenger cars in Europe by 2030. To accelerate this transition and cater to the fast-growing e-car market, the group is studying the creation of a dedicated electric car unit and its software in France. The scope of the plans would include electric and software activities and technologies across the entire value chain: engineering (part of the Technocentre, Renault Software Lab, Lardy and other sites under study in the Paris region), manufacturing (Electricity, Cléon) and all other facilities associated with these activities.

The business model of this autonomous entity would be adapted to the specificities of e-cars and would also be able to partner on new technologies and services. The manufacturer plans to present further details on the planned restructuring at a capital market day in autumn.

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