Renault is one of the big car manufacturers, which, like Ford, or before Geely with Polestar and Volvo, are considering the possibility of separate all economic and business activity related to electric cars to attract greater investment and thus gain operational capacity with which to develop new technologies. With this they will also be able to better manage, and separately, the still distant end of sales of internal combustion vehicles.
The CEO of Renault himself, Luca de Meo, has spoken about this, in the most open way to date, who from an economic and business point of view sees internal combustion cars and electric cars as “two different sports”.
It was during the conference “The Future of the Car”, in its 2022 edition, an event held by the Financial Times, where the manager of Italian origin has presented his vision about how electric cars have to be managed differently from internal combustion cars. A way of understanding the future of the industry that is completely opposite to that of other large manufacturers, such as Mercedes or Stellantis, who will continue to maintain both types of technology under the same business structure.
“We see electric vehicles as a growth business and internal combustion engines as a stable cash generator”. He added: “There is an industrial need to separate the two teams because they are playing different sports.”
In a certain sense, the CEO of the French consortium has confirmed that there will be an electrical split within the consortium, commenting that the new division will go public “when we are ready to show the markets and investors that it makes sense”.
He went on to comment: “We think there is still potential for internal combustion technology, but it is a old game. In this case, synergies and volume matter, and if I separate the internal combustion activities and combine them with another partner or another player, it will give me a cost advantage and we can collect some of the margins to invest in the new technology” .
One of the first manufacturers that has taken this path has been Geely, who has Volvo under his control. From the Swedish firm itself, and to give more value to the models that have already been launched and are about to be launched, the Chinese consortium launched the Polestar brand, a firm that, although it shows synergies in common with Volvo, is commercially completely unrelated to the veteran Swedish manufacturer.
However, unlike many other companies (such as Rivian), Polestar did not want to consider going public with its IPO until it had reliable products on the market that they show investors what the company’s strengths are and where it is heading, which is precisely what Luca de Meo himself has commented that he is looking for before launching an electricity division on the stock market.
Now that Polestar has become a manufacturer based in Europe (it already registers more units than other reputable manufacturers such as Jaguar or Alfa Romeo, which only sell internal combustion models), it is when the company tries to enter the stock market. Something that will predictably do during this same spring.