Renault is planning to separate its Electric Vehicle Operations from the rest of its company.
Renault, one of the world’s largest automakers, is considering to separate its electric vehicle. According to Reuters, they said that they are considering all options on the table and possibly via an initial public offering. The move would provide a clearer picture of Renault’s prospects for expanding its electric-car business and challenging automakers such as Tesla and Volkswagen in the race to dominate the EV market.
Renault’s Chief Officer Thierry Pieton said that any plans were subject to approval from its alliance partner Nissan, but made clear the Japanese carmaker was “in the loop” as Renault weighed up its options. Renault’s share briefly spiked up to 5% after Bloomberg reported that Renault might consider lowering its stake in Nissan as part of its separation plans in their Electric Vehicles. However, a Nissan spokesperson said that “we do not comment on speculation.” Renault also did not comment on the said statement.
Renault said that its revenue fell by 2.7% from a year earlier to 9.75 billion euros ($10.6 billion). Analysts had expected revenue of around 9.61 billion euros, according to Refinitiv estimates. Excluding Avtovaz and Renault Russia, their revenue declined to 1.1% at 8.9 billion euros.
It is recalled that Ford also made the same move where the automaker separated its electric vehicles from the internal combustion engines.