* An IPO of the electricity business in H2 2023 among the options
* Too early to discuss the impact on the Renault Nissan-CFO alliance
* Sales volumes -17.1% to 552,000 units, lowest since 2009
* Semiconductor shortages and Russia weigh
* Turnover down 2.7% and above expectations
(Updated with IPO project, course)
by Gilles Guillaume and Nick Carey
PARIS/LONDON, April 22 (Reuters) – Renault RENA.PA announced on Friday that “all options were on the table” for its plan to separate its electrical and thermal activities, including a possible IPO of its battery-powered vehicles in the second half of 2023.
Thierry Piéton, new financial director of the diamond group, added during a conference call with financial analysts that the project should obtain the approval of its Japanese partner and shareholder Nissan 7201.T, held “in the loop” of the work. of the four teams who will work on the new structure by the “capital market day” scheduled for the fall.
He also replied that it was too early to discuss the consequences of the project for the Renault-Nissan-Mitsubishi alliance and to say how Nissan was going to position itself vis-à-vis the new structure.
Bloomberg reported in the process that Renault would consider reducing its stake in Nissan to support the transition to electric vehicles, information that has boosted Renault shares. Around 12:20 p.m., the stock reduced its gains to +1.5%.
Renault declined to comment, while Nissan was unable to comment immediately.
While it was the forerunner of electric vehicles with its Japanese ally at the beginning of the past decade, the French car manufacturer was supplanted by Tesla TSLA.O and Volkswagen VOWG_p.DE .
To highlight its strengths and forge an image of a “pure player” in electricity, it announced in February its intention to create a separate entity for its electrical activities, based in France, and another for its thermal and thermal activities. hybrids, based abroad.
Thierry Piéton underlined that Renault could also opt only for a separate presentation of the figures of the two entities to give them better visibility and help investors to better value them.
In the event of a real separation, sources told Reuters that engineering and factories will be shared between the two legal entities and that the thermal part will be based in Spain, the hybrid hub of Renault, and in Romania, main traditional mechanics pole of the group.
Ford FN also announced last month that it intended to operate a separate management of its electric activities and its historical thermal engines.
DISCUSSIONS CONTINUE IN RUSSIA
In the first quarter, sales of Renault brand electric vehicles in Europe accounted for no less than 36% of its total sales, ahead of the market and in line with a target of 100% electric by 2030.
The group’s total sales volume worldwide, on the other hand, fell to its lowest level in 13 years (-17.1% to 552,000 units) due in particular to shortages of semiconductors and the loss of its second market, Russia, where it suspended its activities due to the war in Ukraine.
The manufacturer, however, partially offset this decline with a rise in the prices of its new models, such as Arkana and Jogger, which limited the fall in its turnover to 2.7%, to 9.7 billion euros, over the past quarter.
The turnover is higher than the Refinitiv consensus, which gave 9.6 billion euros.
“Renault continues to show results on its price policy and rationalization of models, the publication of the day constitutes a new step in the right direction”, comments JPMorgan in a note.
We must go back to the first quarter of 2009, in the midst of the automotive crisis linked to the bankruptcy of the Lehman bank, to find such low unit sales (495,000 vehicles), at a time when Lada sales were not yet consolidated.
Turning his back on the ambitious volume strategy that marked the era of his predecessor Carlos Ghosn – who is now the subject of an international arrest warrant nL5N2WK1W3 – managing director Luca de Meo has refocused Renault on its models and its most profitable markets in order to improve the group’s financial situation.
The impact of Russia, where Renault suspended its activity in Moscow at the end of March and initiated a reflection on the future of its stake in Avtovaz AVAZI_p.MM , should be felt more in the second quarter, even if the first Russian automotive group of which he is a controlling shareholder must resume production on Monday, at least for a few days, after the end of a period of leave.
Thierry Piéton indicated that negotiations with the Russian authorities on the follow-up to the events were continuing and that progress was being made, without giving further details.
In the first three months of the year, Renault lost around 38,000 sales in Russia, or 166 million euros in turnover, but the country was still its second largest market behind France.
(Gilles Guillaume report, with Nick Carey in London, edited by Matthieu Protard, Jean-Michel Bélot and Sophie Louet)