French carmaker Renault announced Tuesday a profound reorganization to attract investors to its electricity projects, in the image of other companies in the sector that need billions of euros for the green transition that Europe wants.
A new electrical branch, baptized Ampereit will have 10,000 employees in France who have to produce around one million electric vehicles of the Renault brand on the horizon of 2031, the group announced at an investor conference in Paris.
Ampere will produce, for example, the new Renault 5 and Renault 4 electric, in the north of France.
The group wants to bring Ampere “as soon as possible” to the stock exchange at the end of 2023 and will thus finance, thanks to the contribution of new capital, its costly electric transition, while maintaining a “significant majority” in this subsidiary.
Ampere wants to have bright expectations like those of his North American rival Tesla, e expected growth of more than 30% per year in the next eight years, and reach the financial balance in 2025.
This new phase of its strategic plan, called “Renaulution”, must allow the French company to achieve an operating margin of more than 8% at group level, in 2025, and more than 10% in 2030.
The American Ford also announced the creation of an electric subsidiary, Model E, while the German Volkswagen has made its Porsche brand public to finance its electrification.
Although Renault will continue with heat engines outside the European Union (EU), in the block it will bet on the electric future to fit its climate aspirations, since the new vehicles authorized for sale in 2035 must not produce greenhouse gas emissions.
Therefore, Renault plans to share its assets 50% with the group jovial Chinesealready owner of Volvo.
The two partners will create an equipment supplier called Horse (horse in English) which will develop, manufacture and sell gasoline and diesel heat engines as well as hybrids.
This Franco-Chinese division will have 19,000 employees in Europe (Spain, Romania and Sweden), China and South America, spread over 17 plants and five research and development centers.
Its turnover, estimated at over 15,000 million euros (one third of the group’s total in 2021), is expected to grow by 4% until 2027.
Renault also announced the creation of a new entity, Power, which will combine all the group’s thermal and hybrid activities: not only the Horse project, but also the non-electric vehicles of the Renault brand, its economy model Dacia and utility vehicles.
The the Alpine sports brand will also open to investors and expects growth of 40% per year between 2022 and 2030.
A big problem is pending: the French state and the Japanese partner Nissan each have a 15% stake in Renault, and it remains to be seen what stake the Japanese group will take in the new electricity subsidiary.
This reorganization, in fact, precedes a profound change in the Renault-Nissan-Mitsubishi alliance, with a reduction in Renault’s stake in Nissan, which will be specified “in the coming weeks,” said the executive director of the French group, Luca di Meo.
Source: AFP
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Source: Clarin
