Similar to Ford, Renault could also spin off its electric car business in the future. It is said that this should be discussed in Renault management. An IPO for the new e-car division is already being targeted for the coming year.
Renault: split into combustion engines and electric cars
According to reports, the French carmaker Renault is planning a move similar to that of its American competitor, Ford Renault could split into two entities. One would then focus entirely on the combustion engine business, while the other would focus on electric cars. The Renault management is said to be exploring such a possibility.
That this is more than just a rumor has one Meeting of Renault managers with analysts already made clear in the past week. According to information from Bloomberg, top executives such as Renault’s Chief Executive Officer Luca de Meo and Chief Financial Officer Thierry Pieton have outlined a possible restructuring of the company (source: Bloomberg Quint).
Should there be a split, then the business with combustion engines and hybrid cars could new partner outside of France be merged. In the case of purely electric cars, on the other hand, there is talk of them being bundled in a separate unit in France. A possible IPO of the e-car division is also being discussed. It could be as early as 2023. Renault declined to comment on this to Bloomberg.
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Ford to divest electric car business
According to Ford’s plans, the car company will be Ford Blue and Ford Model e appear. The new Ford Model e unit will expand the range of electric vehicles and develop software, technologies and services for connected vehicles. Ford Blue, on the other hand, should focus on combustion engines. The aim is to reduce costs and simplify production.