Renault will set up an activity dedicated to electric vehicles before the only electric push
FFrench carmaker Renault has become the latest brand to announce plans to split its internal combustion engine (ICE) and electric vehicle (EV) businesses.
Following Ford’s example, Renault has confirmed that it will create a separate entity dedicated to the development, production and sale of electric vehicles with more than 10,000 employees by 2023, while the development of the ICE and the hybrid would continue through its main activity outside France, again with a target of 10,000 employees.
The announcement comes as Renault reaffirms its intention to reach 100% electric vehicle sales in Europe by 2030, five years before the European Union targets a ban on non-zero-emission engines.
While the EU effectively bans ICEs through policy by 2035, international markets such as Australia will continue to be a source of demand for traditional engines, which Renault Group acknowledges.
“The Renault group is also studying the possibility of grouping its ICE activities and technologies and hybrid engines and transmissions based outside France within a specific entity,” said the manufacturer.
“Given the capacity for innovation and significant improvement in the reduction of emissions of this type of vehicle, the Renault group is convinced that thermal hybrid and plug-in hybrid vehicles have significant long-term prospects and outlets in Europe and in international markets, and that its technologies such as E-TECH [hybrid]represent real levers of growth.
“By bringing together its activities and technologies related to thermal and hybrid engines and transmissions, the Renault group aims to strengthen the potential of its technologies, but also to contribute to the development of low-emission fuels, LPG, etc., and thus create a leader powertrain worldwide for the automotive industry.”
It looks like Nissan is waiting to see how the French arm of the Renault-Nissan-Mitsubishi Alliance decision will play out in market developments, with Nissan chief executive Ashwani Gupta saying Automotive News Europe the Japanese automaker has considered splitting its ICE and EV operations, but is not yet ready to do so.
“It’s too early to consider due to our diverse market portfolio and diverse product portfolio,” Gupta said.
According to Automotive News Europe report, Renault is also seeking to reduce its 43.4% stake in Nissan, as the latter brand only holds 15% of the non-voting shares of its French partner.
Earlier this year, the Renault-Nissan-Mitsubishi Alliance announced that it would invest 23 billion euros (A$36.4 billion) in the development of electric vehicles over the next five years, aiming to introduce 35 new models by 2030.