Under the plans, an entity dedicated to EVs and software would be based in France and employ about 10,000 people by 2023 while a second entity would focus on internal combustion and hybrid powertrains, and be based outside France, also with a staff of about 10,000.
Representatives for Renault and Nissan declined to comment when contacted by Bloomberg News. The Wall Street Journal and the Financial Times reported earlier on some of the details of the talks.
De Meo, who will present an update of his strategy Nov. 8, is due to give details on the planned carve-outs, whose codenames are “Horse” and “Ampere.”
While no decisions have yet been made, there is a chance that the talks will lead to an agreement before this date, the people said. Given the carmakers’ close ties, Nissan has to sign off on the carve-out plans, the people said.
Renault is seeking for Nissan to participate in its EV business while retaining a 51 percent stake, the people said. For the combustion-engine assets, the company is planning a new entity with Aurobay, a joint venture between Volvo Car and China’s Zhejiang Geely Holding Group as well as other investors.
Talks are focused on Renault retaining a minority stake in the legacy business and possibly aiming for an initial public offering, the people said. Nissan is resisting this move due to concerns about giving a Chinese company access to the technology, they said.
“What could come out of this is an agreement for a planned selldown of the stake and I think that would be very well taken by the market,” said Jefferies analyst Philippe Houchois. “It doesn’t need to be done today, it could be over a number of years,” with Renault agreeing to sell the stake “in tranches, at certain prices,” and Nissan getting priority on those sales, he said.
“Anything like this that unlocks a situation that has become frozen is positive,” Houchois said.
