Renault to split into five units with plan to spin-off electric vehicles next year
An early mover in the electric car race, Renault has fallen behind newer, more agile rivals like Tesla
French car maker Renault said its major overhaul will see it separate its activities into five businesses, deepen ties with China's Geely and spin off its electric vehicles unit through a stock market listing next year.
At a long-awaited investor presentation, Renault said it targeted operating margins of 8% for 2025 and rising to more than 10% in 2030, from 5% expected this year.
It also plans to re-instate dividends from 2023 after a three-year hiatus and generate more than €2bn of cash annually between 2023-25, growing to more than €3bn in the following five years.
An early mover in the electric car race, Renault has fallen behind newer, more agile rivals like Tesla. After needing emergency state cash during the pandemic, the group is looking to extend on a turnaround following losses in 2019 and 2020 and increase the valuation of its different parts.
But big question marks remain on its strained relationship with long-standing Japanese partner Nissan, as Renault looks for other outside investors for each of its divisions.
The main plank of the car maker's strategy is separating its combustion engine business - which will partner with Geely in a 50-50 joint venture, also announced on Tuesday - from its electric vehicle unit, to be listed in the second half of next year.
Nissan is expected to take a stake in the electric vehicle venture, codenamed "Ampere", alongside other investors, though Renault will keep a majority stake.
