Skip to main content
Sister Publication Links
  • Automotive News
  • Automobilwoche
  • Automotive News Canada
  • Automotive News China
Subscribe
  • Subscribe
  • Newsletters
  • Login
  • HOME
    • Latest news
    • Automakers
    • Suppliers
    • New Product
    • Environment/Emissions
    • Sales By Market
    • On The Move
    • Auto Shows
    • Munich Auto Show
    • Geneva Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
  • Features
    • Long Read
    • Interview of the Month
    • Focus on Electrification
    • Focus on Technology
    • Segment Analysis
    • Cars & Concepts
    • Supplier Spotlight
    • Europe By The Numbers
  • Opinion
    • Blogs
    • Commentary
    • Guest columnists
  • Photos
    • Photo Galleries
    • Geneva Photo Gallery
    • Beijing Photo Gallery
    • Frankfurt Photo Gallery
    • Paris Photo Gallery
    • Shanghai Photo Gallery
  • Podcasts
  • Car Cutaways
  • EVENTS
    • ANE Congress
    • ANE Rising Stars
    • ANE Eurostars
  • More
    • Publishing Partners
    • Social Media
    • Contact Us
    • Media Kit
    • About Us
    • Capgemini: Invent Head on automotive takeaways from CES 2023
    • Capgemini: Securing the industry's future through a radical rethink
    • Capgemini: Succeeding with the automated driving journey through AI
    • Capgemini: The circular economy is spurring new thinking on EV batteries
    • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
    • HEXAGON: Plugging into data is the only way to make winning EVs
    • TUV Rheinland: Ideas, services and certifications for smart mobility
    • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
    • Toyota Europe
    • UFI Filters
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter
MENU
Breadcrumb
  1. Home
  2. Focus on Electrification
May 11, 2022 02:28 AM

Renault CEO says electric, combustion cars are 'two different sports' as automaker weighs spinoff

Renault CEO Luca de Meo plans to restructure the company to navigate the transition to electrification.

Peter Sigal
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Luca de Meo 2022 Renault

    "We see EV as a growth business and ICE [internal combustion engines] as a stable cash generator," Renault CEO Luca de Meo said.

    Electric and internal combustion cars are "two different sports," Renault Group CEO Luca de Meo said, and there is an industrial rationale for carving out the two powertrains as separate businesses.

    Renault and other automakers – including Ford, Geely and Mahindra -- are weighing spinoffs of their EV activities, seeking to attract the kind of capital that has driven Tesla to a trillion-dollar valuation, gain agility to develop new technologies, and manage the likely end of internal-combustion sales in the next few decades.

    Others – notably Stellantis, Volkswagen and Daimler -- have said they plan to manage the transition to electrification with the same business structure.

    Related Articles
    Automakers weigh EV spinoffs to protect their future
    Stellantis, VW, Mercedes won't split off EV business

    De Meo has said that Renault is considering a separate listing of its EV activities, while continuing to run its internal combustion production with a partner. 

    "We see EV as a growth business and ICE [internal combustion engines] as a stable cash generator," de Meo said at the Financial Times Future of the Car 2022 conference on Monday.

    Renault is concentrating its electric vehicle operations around a cluster of factories in northern France, including a gigafactory and an "ecosystem" of suppliers and partners. At the same time, most of its internal combustion production is based in lower-cost countries such as Romania, Morocco, Slovenia, Spain and Turkey.

    "There is an industrial need to separate the two teams because they are playing different sports," he said. A separate EV unit listing could happen "when we are ready to prove to the markets and investors that it makes sense," he added.

    The first EV spinoff from a major automaker, Geely's Polestar brand, is expected to go public this spring via a reverse SPAC merger.

    De Meo said there is still value in the internal combustion business, and he said earlier that the majority of powertrains in 2030 will still be based on a gasoline or diesel engine, albeit with hybrid boosts.

    "We think there is still potential for ICE technology, but that is an old game," he said. "In that case, synergies and size matter, and if I carve out ICE activities and combine theme with another [automaker] or another player, it will give an advantage in cost and I can cash out some of the margins and invest them in the new technology."

    He added that any separation could involve 10,000 employees on each side, out of a total work force of about 160,000 at Renault. 

    "It's not splitting the company in two but isolating two businesses that are completely different," he said.

    FOCUS ON ELECTRIFICATION NEWSLETTER: A monthly wrap-up of the latest electric vehicle news, including interviews and global EV sales data, delivered to your inbox.
    RECOMMENDED FOR YOU
    Renault cedes power at Nissan for uncertain benefits
    Recommended for You
    Renault Nissan logos 2023
    Renault cedes power at Nissan for uncertain benefits
    BYD Han sedan
    BYD expects 2022 profit surge as sales jump
    Arrival has built test models and is due to launch production in 2022.r.
    EV startup Arrival slashes workforce; names new CEO
    Capgemini Invent Head on automotive takeaways from CES 2023
    Sponsored Content: Capgemini Invent Head on automotive takeaways from CES 2023
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    SUBSCRIBE TODAY

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    SUBSCRIBE NOW
    Connect with Us
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

    Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI  48207-2997
    Tel: +1 877-812-1584

    Email Us

    ISSN 2643-6590 (print)
    ISSN 2643-6604 (online)

     

    Resources
    • About us
    • Contact Us
    • Advertise with us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Europe
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • HOME
      • Latest news
      • Automakers
      • Suppliers
      • New Product
      • Environment/Emissions
      • Sales By Market
      • On The Move
      • Auto Shows
        • Munich Auto Show
        • Geneva Auto Show
        • Paris Auto Show
        • Beijing Auto Show
        • Shanghai Auto Show
    • Features
      • Long Read
      • Interview of the Month
      • Focus on Electrification
      • Focus on Technology
      • Segment Analysis
      • Cars & Concepts
      • Supplier Spotlight
      • Europe By The Numbers
    • Opinion
      • Blogs
      • Commentary
      • Guest columnists
    • Photos
      • Photo Galleries
      • Geneva Photo Gallery
      • Beijing Photo Gallery
      • Frankfurt Photo Gallery
      • Paris Photo Gallery
      • Shanghai Photo Gallery
    • Podcasts
    • Car Cutaways
    • EVENTS
      • ANE Congress
      • ANE Rising Stars
      • ANE Eurostars
    • More
      • Publishing Partners
        • Capgemini: Invent Head on automotive takeaways from CES 2023
        • Capgemini: Securing the industry's future through a radical rethink
        • Capgemini: Succeeding with the automated driving journey through AI
        • Capgemini: The circular economy is spurring new thinking on EV batteries
        • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
        • HEXAGON: Plugging into data is the only way to make winning EVs
        • TUV Rheinland: Ideas, services and certifications for smart mobility
        • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
        • Toyota Europe
        • UFI Filters
      • Social Media
        • Facebook
        • Instagram
        • LinkedIn
        • Twitter
      • Contact Us
      • Media Kit
      • About Us