Renault’s CEO, Luca de Meo and his counterpart at Nissan, makoto uchidahave agreed to meet to start talks on the French automaker’s plan to sell part of its combustion engine business to Chinese group Geely Automobile, it has been reported. Financial Times. Nissan has expressed concern about the possibility that the combustion engine technology that it developed with the French manufacturer is shared with a Chinese company.
At the beginning of April of this year, several senior managers of Renault, including CEO Luca de Meo and financial director Thierry Pieton, had presented financial analysts with a plan that contemplated the split of the entity in two. The first would be a new, fully autonomous entity based on a business model adapted to the specificities of electric cars. Among its functionalities would be the ability to make associations focused on the development of new technologies and services.
Renault is also investigating the possibility of pooling its activities related to hybrid and combustion cars in a separate unit that would have its headquarters outside France. Between both companies they would add around 10,000 employees in 2023. The strategy to carry out this split that would help the electricity transition financing would lean on partnerships with other companies and by entering their capital of other companies by selling shares on the stock market.
However, this proposal will require in all cases the nissan consent because the two Alliance partners share technologies. For this reason, De Meo has summoned Uchida so that both leaders can put their proposals on the table and reach an agreement.
According to The Wall Street JournalNissan is pressuring Renault to sell a majority stake in the Japanese automaker as part of a shakeup of the alliance between the two companies. In exchange, Nissan would invest in Renault’s new electric vehicle business.
Renault owns about 43% Nissanwhile the Japanese manufacturer only owns the 15% Renault. Although he is its main shareholder, he does not have the right to vote. Nissan is pressuring Renault to reduce its stake to 15% to match Nissan’s in Renault, Bloomberg has reported, citing sources familiar with the matter.
For their part, Geely and the Saudi oil giant Aramco have held talks to acquire a major stake in Renault’s combustion engine business. In May, Renault sold 34% of its South Korean subsidiary to Geely and will also develop with the Chinese group the hybrid vehicles produced at its Busan plant in South Korea.
Renault will announce the details of the division of its two electric and internal combustion vehicle units on November 8.