Renault is considering separating its electric and combustion engine car divisions, a move that other automakers have resisted since it could stifle their capacity to use vehicle profits generated from the sale of conventional combustion engine vehicles to support their green vehicle projects.
A "strategic investigation" was unveiled by the French manufacturer as it achieved its first annual profit in three years and declared its turnaround strategy was on track.
With its finances in better shape, the firm is stepping up its attempts to catch up to Tesla and Volkswagen, whose stock prices have skyrocketed as they lead the way in the transition to electric vehicles.
Renault claimed in a report to investors that a "pure electric entity" could concentrate on France and be available to collaborations, while a second company for internal combustion engines and hybrid cars would center on the rest of the world and do the same.
Renault's major production hub for hybrid powertrains is in Spain. Combustion engines are sourced from Romania, Turkey, and South Korea.
The growing preference among investment managers for companies focused on low-carbon technologies has helped Tesla become the world's most valuable automaker, prompting some investors and analysts to recommend that other carmakers split their combustion engine and electric operations.
Companies like General Motors, on the other hand, have opposed such efforts, claiming that income from gasoline and diesel vehicles will be used to fund the transition to electric vehicles.
Governments across Europe are pressuring automakers to phase out combustion engines, and Renault has stated that it plans to be all-electric in Europe by 2030. Other markets, such as Latin America, Southeast Asia, and Eastern Europe, are likely to use gasoline and diesel for extended periods of time.
Clotilde Delbos, Renault's finance boss for the past six years, will take over full-time leadership of the company's Mobilize division.
The venture, which includes car-sharing and data management, is part of the company's plan to become carbon neutral in Europe by 2040.
Delbos will remain as CEO Luca de Meo's deputy and will be succeeded as finance head by Thierry Pieton, her current second-in-command deputy.
De Meo is leading a broad reorganization initiative known as "Renaulution," which aims to minimize costs and prioritize value above volume.
Renault was struck severely by the Covid-19 outbreak after being rocked by the arrest of Carlos Ghosn, the architect of its relationship with Nissan in 2018.
But, thanks to de Meo's efforts, Renault and Nissan said last month that they would collaborate more closely on electric vehicles as part of a five-year, $26 billion investment plan.
According to Reuters, Nissan and other alliance partners Mitsubishi Motors were just recently informed that Renault was considering splitting up its internal combustion engine and hybrid divisions.
They did, however, tell Reuters in nearly identical emailed statements that they "consider this action to be a preparation for the following stages of the Renaulution plan," and that they would "continue to collaborate as an alliance partner."
"It's a project that on paper we are capable of doing on our own, we don't need anyone to accomplish it," de Meo said when asked if the plan would affect the alliance structure. "But clearly we will leave the door open to our partners in case they are interested in making the company's structure grow."
(Source:www.usnews.com)
A "strategic investigation" was unveiled by the French manufacturer as it achieved its first annual profit in three years and declared its turnaround strategy was on track.
With its finances in better shape, the firm is stepping up its attempts to catch up to Tesla and Volkswagen, whose stock prices have skyrocketed as they lead the way in the transition to electric vehicles.
Renault claimed in a report to investors that a "pure electric entity" could concentrate on France and be available to collaborations, while a second company for internal combustion engines and hybrid cars would center on the rest of the world and do the same.
Renault's major production hub for hybrid powertrains is in Spain. Combustion engines are sourced from Romania, Turkey, and South Korea.
The growing preference among investment managers for companies focused on low-carbon technologies has helped Tesla become the world's most valuable automaker, prompting some investors and analysts to recommend that other carmakers split their combustion engine and electric operations.
Companies like General Motors, on the other hand, have opposed such efforts, claiming that income from gasoline and diesel vehicles will be used to fund the transition to electric vehicles.
Governments across Europe are pressuring automakers to phase out combustion engines, and Renault has stated that it plans to be all-electric in Europe by 2030. Other markets, such as Latin America, Southeast Asia, and Eastern Europe, are likely to use gasoline and diesel for extended periods of time.
Clotilde Delbos, Renault's finance boss for the past six years, will take over full-time leadership of the company's Mobilize division.
The venture, which includes car-sharing and data management, is part of the company's plan to become carbon neutral in Europe by 2040.
Delbos will remain as CEO Luca de Meo's deputy and will be succeeded as finance head by Thierry Pieton, her current second-in-command deputy.
De Meo is leading a broad reorganization initiative known as "Renaulution," which aims to minimize costs and prioritize value above volume.
Renault was struck severely by the Covid-19 outbreak after being rocked by the arrest of Carlos Ghosn, the architect of its relationship with Nissan in 2018.
But, thanks to de Meo's efforts, Renault and Nissan said last month that they would collaborate more closely on electric vehicles as part of a five-year, $26 billion investment plan.
According to Reuters, Nissan and other alliance partners Mitsubishi Motors were just recently informed that Renault was considering splitting up its internal combustion engine and hybrid divisions.
They did, however, tell Reuters in nearly identical emailed statements that they "consider this action to be a preparation for the following stages of the Renaulution plan," and that they would "continue to collaborate as an alliance partner."
"It's a project that on paper we are capable of doing on our own, we don't need anyone to accomplish it," de Meo said when asked if the plan would affect the alliance structure. "But clearly we will leave the door open to our partners in case they are interested in making the company's structure grow."
(Source:www.usnews.com)
