Renault Group is exploring a possible breakup and initial public offering of its electric vehicle assets, according to analysts, a move that would transform the French automaker, which has been hurt recently by its ties to Russia.
The possibility of a transformational change was outlined in broad terms by the manufacturer in February, when CEO Luca de Meo said it was exploring splitting off its electrified powertrain assets as it moves toward a fully electric lineup in Europe by 2030.
But during a meeting last week with analysts, de Meo and new CFO Thierry Pieton provided more details, including timing and the potential involvement of a partner.
“The management team continues to conduct exploratory works in view to split the company into possibly two entities,“ Stifel analysts including Pierre Quemener wrote in a note. A so-called New Mobility company made up of electric vehicles and assets from its Mobilize car-sharing unit would be separated from the legacy assets, they said.
“The CEO added that the latter could be combined with the ones of a potential partner,“ the note said. “An IPO of New Mobility assets could be contemplated for 2023.“
A Renault spokesman declined to comment.