Renault mulls plan to separate EV business, finding partner for legacy assets

Less than a week before Russia invaded Ukraine that triggered wide-ranging sanctions and an exodus of foreign companies, Renault said it was considering a reorganization during an earnings presentation.

The company “is studying the opportunity to bring together its 100 percent electric activities and technologies within a dedicated entity in France to accelerate their growth,“ it said in a Feb. 18 statement. “At the same time, Renault Group is also studying the opportunity to bring together its activities and technologies of ICE and hybrid engines and transmissions based outside of France within a dedicated entity.“

Any IPO of the EV and Mobilize assets could be led by Clotilde Delbos, who relinquished her role in February as chief financial officer to head Mobilize.

“All options to separate the ICE from the BEV business are on the table,“ Exane BNP Paribas analysts wrote in a note, saying this could include an IPO of the EV assets or off-loading of the combustion-engine operations into a joint venture.

JPMorgan analyst Jose Asumendi also wrote about the possible split including “looking at Renault as a standalone EV entity carve out of the current group under the format of an IPO.“

Other automakers are considering similar moves as a way to transition to electric vehicles, with Ford Motor separating its EV operations from its legacy combustion-engine business.

The new Ford Model e unit will scale up EV offerings and develop software and connected-vehicle technology and services, while Ford Blue will focus on combustion vehicles, cutting costs and simplifying operations. Ford had considered a spinoff.