French carmaker Renault is reportedly investigating a possible split of the group. The activities in the field of electric vehicles could also be listed separately on the stock exchange.
The possibility of a major change within the group was already broadly outlined by the car manufacturer in February. At a meeting with analysts last week, top executives, including CEO Luca de Meo and financial director Thierry Piéton, gave more details about the timing of the plans and the potential involvement of a partner.
“The management team continues to conduct exploratory studies to split the company into two parts potentially,” analysts at investment bank Stifel wrote. First, the activities in the field of electric cars will be separated from the old Renault, which produces cars with combustion engines, into a newly created New Mobility company.
Analysts at Exane BNP Paribas and JPMorgan also say that Renault has “all options on the table” about a possible group split. According to the analysts, CEO De Meo has indicated that an IPO of the electrical division can be considered in 2023. Then, according to the CEO, the old activities could be combined with those of a potential partner.
A move to split Renault would serve not only to divert attention from an expensive withdrawal from Russia but also to raise money for the development of electric vehicles. Renault recently lowered its forecasts due to the suspension of its operations in Russia. Possible interventions at AvtoVaz, a Russian subsidiary of Renault, are still being considered.
Renault is not the only carmaker taking steps to separate the electric branch from the rest of the company. American competitor Ford announced at the beginning of March that it would form a separate division for making its electric cars.
According to Ford, the intention is to remain part of the group for the new branch. However, some investors have urged Ford and General Motors to put the electric division completely on its own two feet. According to them, the value of these divisions could then be better utilized.