By bringing in partners on the combustion-engine side Renault aims to free up funds to invest in EVs, a technology in which it was a pioneer with alliance partners Nissan and Mitsubishi, but in which it is now eclipsed by pure players such as Tesla.
Renault intends to retain majority ownership of its electric division, which will employ about 10,000 people and which could be bourse-listed via an IPO in the second half of 2023.
However, it will only remain a reference shareholder, not a controlling shareholder, of the combustion engine unit, which will have similar staff levels, said two other sources familiar with the plans.
One of the sources said Renault may hang on to a 40 percent stake.
Renault declined to comment.
The automaker at a capital market day this autumn will set out its plans for its electric arm based in France and the combustion unit headquartered abroad.
That entity will include factories producing engines and gear boxes for gasoline and hybrid cars in Spain, Portugal, Turkey, Romania and Latin America.