After Volvo and Ford, Renault aims to split its EV business into a separate company

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Last week, the French company Renault announced his project to fully revamp the spin-off of its electric car business into a separate company in 2023, hoping to catch up with rivals Tesla and Volkswagen.

Renault said the new EV spin-off could hire 10,000 new employees by 2023, and that its business model would be “adapted to the specificities of electric vehicles and would be able to forge partnerships in new technologies and services”. according to a Renault statement.

The company says it is studying the possibility of combining its ICE and hybrid motor and transmission activities outside of France. The EV activity, which would be kept in France, could potentially be grouped under the Mobilize mobility brand.

The aim of the plan is to add value to its electrical business, and in particular to attract Telsa-like valuations while phasing out ICE sales in coming years. Renault plans to go purely electric by 2030 – and with the French government holding a 15% stake in the company, it is essential to maintain its high level EV business in the country, with the parallel objective of relocating the combustion division outside France.

Rumors of the plans were stirred in April, when media said CEO Luca de Meo pitched the idea to analysts, which he confirmed later. Still, it’s unclear what form the plan will take.

Earlier this year, Ford announced it would split its automotive business into two separate units, with electric vehicles to be designed and manufactured under Ford Model e and ICE under Ford Blue. General Motors is also facing pressure to stop its dusty ICE business from hurting the public appeal of an electric future, but media reports suggest that the company is debating the financial necessity of this – electric vehicles and conventional cars share about 80% common parts, “and the people who develop most of the two types of vehicles are scrambled in automakers like eggs in an omelet”, reports Bloomberg. Separating the two companies is therefore not always easy.

Meanwhile, the young and nimble Polestar in Sweden, which has become Volvo’s electric vehicle brand, has been criticized for its lack of a clear brand image, which further highlights the difficulties of balancing an upstart fiery and sustained security. legacy brand like Volvo.

Nissan has just announced that it is too early to create its own electric vehicle company. Renault owns a majority stake in Nissan, which in turn owns a 15% non-voting stake in Renault – Renault CEO Meo plans to meet with executives in Japan to discuss the proposal.

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