Renault considers spin-off of electric car division

Renault considers spin-off of electric car division

Renault has now confirmed it has launched a strategic review into a spin-off of its e-car business - and given more details. Specifically, a separate company in France could be dedicated to the development, production and sales of electric vehicles and software.

This autonomous unit would have a business model adapted to the specificities of e-cars and would be able to partner on new technologies and services - at least that's how Renault puts it in a statement. At the same time, Renault is also exploring the possibility of bundling its internal combustion-only and hybrid car activities into a separate unit outside France. Both companies could have around 10,000 employees by 2023.

Both companies are likely to remain members of the Renault-Nissan-Mitsubishi alliance, according to current thinking. "The aim of this strategic thinking is to adapt each technology, drawing on the group's strengths and expertise in its various markets and within the alliance," it said.

The first reports of such plans came in early April, when top executives such as Chief Executive Officer Luca de Meo and Chief Financial Officer Thierry Pieton were said to have presented the possible plan to analysts. A little later, de Meo confirmed the gist of the rumors.

The move is primarily intended to strengthen the e-car business - the Renault brand is expected to be all-electric in Europe by 2030. The French government is known to hold a 15 percent stake in Renault Group, so it's important that the potential e-car and software business be based in France, while the internal combustion division is explicitly said to be based outside of France. This would also give the e-division access to Renault's industrial resources in France, such as the ElectriCity eMobility industry cluster in northern France.