- Renault announced that it will divide itself into in five separate businesses, deepen ties with China’s Geely, and spin off its electric vehicle unit through a stock market listing next year
- This week, during an investor presentation, Renault officials said it aims to reach an 8 percent operating margin for 2025 and more than 10 percent in 2030, from 5 percent expected this year
- Despite being a pioneer in the EV market, Renault has fallen behind younger rivals, such as Tesla
PARIS, France: French auto maker Renault has announced that it will divide itself into in five separate businesses, deepen ties with China’s Geely, and spin off its electric vehicle unit through a stock market listing next year.
This week, during an investor presentation, Renault officials said it aims to reach an 8 percent operating margin for 2025 and more than 10 percent in 2030, from 5 percent expected this year.
After a three-year hiatus, the carmaker also plans to reinstate dividends from 2023 and generate more than 2 billion euros of cash annually between 2023-25, growing to more than 3 billion euros over the next five years.
Despite being a pioneer in the EV market, Renault has fallen behind younger rivals, such as Tesla.
However, there are also concerns about its strained relationship with long-standing Japanese partner Nissan, as Renault looks for outside investors for each of its divisions.
The main pillar of Renault’s strategy is separating its combustion engine business, which will partner with Geely in a 50-50 joint venture.
Nissan is also expected to take a stake in the electric vehicle venture, codenamed “Ampere,” but Renault will maintain a majority stake.
Meanwhile, Reuters reported that due to Japanese reservations about sharing technology with Chinese firms, such as Geely, discussions with Nissan have stalled.
Renault CEO Luca De Meo said the group wanted to give the alliance a strong future and a “new chance,” but he also said that, as in a marriage, “it is important for us to have our own hobbies and our own life.”
“We are creating independent businesses, focused on structurally more profitable activities open to external investments, each built around an indigenous set of technologies,” he told investors.
