Renault looks to separately list EV business

The Renault Group is planning to separately list its electric vehicle business in an initial public offering (IPO) next year, chief financial officer Thierry Pieton has said. The potential split comes as Renault is reportedly also considering a sale of a portion of its 43% stake in Nissan, which in turn could lead to a reorganisation of the 23-year-old alliance between the two companies. Spinning off the EV side of the business will bring more efficiency to the business, believes Pieton. “Our first goal is first and foremost to continue to run the business better with a dedicated team with a dedicated business model and dedicated allocation of capital and this is what we are focusing on,” he said on an earnings call on Friday. “The team is very engaged in making it happen.” No final decision has been made on how the split will take place. “At this stage, all options are still on the table, from as simple as showing separate [financial] numbers or in the case of EVs a full IPO,” Pieton said. Renault announced in February that it was planning to split off its internal-combustion powertrain business. “We’ve had a lot of interest from partners since we made the announcement,” Pieton said. “That project is moving quite significantly.” He didn’t comment on potential partners, but long-time engine partner Mercedes-Benz has recently moved development of some of its engines to shareholder Geely. Renault also collaborates with Geely in South Korea and China. The Renault Group is the latest to announce plans to reorganise its business as it shifts its Renault brand to selling only electric cars in Europe from 2030. In March, Ford announced it was splitting its business into three parts, with Ford Blue focusing on ICE cars, Ford Pro on commercial vehicles and Ford Model E on electric vehicles. The divisions would eventually report separate finances rather than being floated separately on the stock market. The trend to reorganise automotive structures has also included the Volkswagen Group announcing the floatation of its Porsche division earlier this year. Pieton drew analogies between the planned divisional separation and football supporters. “We want teams to be more focused. We want them to wear the jersey of the teams they support,” he said. Alliance partner Nissan is being consulted about the possible change. “Absolutely Nissan is in the loop with the announcement,” Pieton said, without going into more detail. “We can’t comment how Nissan will participate, but clearly it’s something we’re working on together.” Renault is considering selling some of its stake in Nissan to raise money to help fund the move to electrification, Bloomberg reported on Friday, citing unnamed sources. Renault sold its 1.5% stake in Daimler (since renamed Mercedes-Benz AG) last year.