Renault: Soon a new dedicated electric vehicle company?
This page is translated from the original post "Renault : bientôt une nouvelle entreprise spéciale électrique ?" in French.
- 13/04/2022 10:24
To raise funds for electric vehicles and lower prices, Renault is officially studying a separate electric subsidiary introduced on the stock exchange.
Renault has an aggressive electric plan with 100% of sales in Europe. But the French manufacturer will still have many thermal cars, especially outside our continent. For investors, this becomes a barrier, compared to manufacturers born 100% electric or becoming so more quickly.
Catching the Tesla wave
Renault is therefore considering reorganizing its structure. “ This could mean a separate action ” announced CEO Luca De Meo during a press conference on Tuesday, April 12, “it’s conditional, that’s exactly what we are studying”.
The goal is therefore to catch up with Tesla. The American manufacturer entered the stock market in 2010 and is now worth more than 1 trillion euros. New fully electric brands, Nio, Rivian, or Lucid, are worth over 30 billion euros. The French firm, on the other hand, has only crumbs, with around 6.5 billion euros as of early April 2022.
What name, and could it reshape the relationship with the Renault-Nissan-Mitsubishi Alliance? It is still too early to tell. But the true “ Renaulution ”, the name of the strategic plan of the recent CEO who arrived in July 2020, is here.
Accelerating Renault’s electric transition
With a stock market listing, the potential company “ Renault E-Tech ” would thus have the means to fulfill its ambitions. It could generate tens of billions of euros to finance the heavy costs of developing electric cars, relocalization, batteries, not to mention software/services.
This highly economic-related operation will therefore have tangible repercussions for buyers. Indeed, with Renault’s massive fundraising, electric technologies will accelerate and costs will decrease.
In the end, future models like the upcoming electric R5 will see their prices gradually fall below those of internal combustion cars.
Read also: Honda: 30 electric cars by 2030, including two sports models
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