The Renault carmaker is preparing to make a historic turn on Tuesday with the creation of two subsidiaries: Ampere, focused on its electric future, and Horse, which brings together its thermal engine activities abroad. The French group must specify the schemes at 7 in the morning before a day dedicated to investors in Paris.
The flagship of the project is called Ampere. This new subsidiary will supervise the production of electric propulsion vehicles, which promised to develop strongly in Europe since the 27 Member States of the European Union and Parliament ratified the ban on new cars with internal combustion engines in 2035. The entity should gather to some 10,000 employees, all based in France, of the 157,000 of the group (Renault, Dacia, Alpine, Mobilize) in the world.
Renault plans to welcome investors into Ampere but would remain the majority shareholder. The entity will produce in particular the electric R5 and 4L in the north of France. After a historic loss in 2020, Losange’s finances are still recovering and have been further weakened by his withdrawal from Russia. The group, a pioneer in electricity, needs massive investments to accelerate further in this area, following its plan called “Renaulution” and presented in the spring of 2021.
But the valuation of the traditional car groups pales in comparison with that of the new entrants specialized in electric cars, such as the American Tesla or the Chinese BYD. Investors showed their interest on Monday in the transformation of Renault, whose share rose 3.77% on the Paris Stock Exchange, to 31.66 euros. The American Ford has already announced a similar operation with the creation of the “Ford Model E”.
Alliance Reorganization
This is Renault’s other big change in 2022: an in-depth review of the alliance with Nissan, led by the diamond brand’s general manager Luca de Meo and his Japanese counterpart Makoto Uchida. It must come after 23 years of a tumultuous and fruitful relationship, and then Renault could reduce its share in Nissan’s capital to 15%, compared to 43% today.
Nissan, historical partner of the French brand through the Renault-Nissan-Mitsubishi alliance and shareholder of Renault up to 15%, plans to invest in the capital of the electric subsidiary. But the level of technological collaboration remains to be defined. The discussions between the French and Japanese groups could extend beyond November 15, the day on which the leadership of the three groups is due to meet in Japan, according to a source close to Nissan.
“We have a lot of points to resolve, I wouldn’t say these are easy discussions, but we will get there,” Makoto Uchida said in an interview published by French media on Friday. “The content must mature, be robust.” In early 2022, the three members of the alliance, the world’s third-largest car group, announced a €23 billion investment in electrification over the next five years, to launch 35 new electric models by 2030.
a thermal horse
At the same time, Renault plans to combine its activities in thermal and hybrid engines and transmissions (petrol and diesel) in another entity called “Horse” (horse). It would bring together more than 10,000 employees in factories and R&D, in Spain, Portugal, Turkey and Latin America.
The French group will have 50% of this new company, as well as the Chinese Geely. The share of thermal vehicles continues to decline in its sales: in the first nine months of 2022, hybrid and electric vehicles already represented 38% of the brand’s registrations in Europe (+12% in one year).
After several waves of dismissals at Renault, this separation of activities worries the unions. The CGT notably opposed in early September the “dismantling of the company”, calling for Renault to remain “a coherent company that has all the trades of a car manufacturer”.
Source: BFM TV
