Spin-off of Renault’s electric car business moves forward even without its Alliance partners

Luca de Meo, CEO of the Renault Group, assures that they already have hundreds of people working on different projects related to the spin-off of their electric and combustion vehicle business. Even if its Japanese partners, Nissan and Mitsubishi, do not agree with this strategy, Renault is willing to take this step, which is gaining strength after starting talks with the French unions and with the senior managers of Nissan and Mitsubishi.

Renault’s strategy to separate its electric car business as a separate entity goes beyond the first intentions that were spread before the summer. The French firm will carry out its plan even without their Alliance partnerswith whom it works both in the development of vehicles and in their manufacture.

Although it has not been confirmed by the French group, it is likely that both companies will remain as members of the Renault-Nissan-Mitsubishi alliance, fitting into the model devised for her. “They know that we have to do it, that we will do it and we have opened the door to each project”, declared Luca de Meo. “In the end the decision to get on the boat is yours, but the train is leaving the station,” de Meo said, using similes closely related to transportation.

De Meo’s plan to break up the automaker’s operations has gathered steam in recent months after talks started with the French unions and also with the senior management of its Alliance partners, Nissan and Mitsubishi Motors. De Meo has said that he will reveal the details of this transformation plan in autumn after “transparent” discussions with Japanese companies.

Hundreds of people are already working on various projects that can go beyond the simple spin-off of the operations carried out with electric vehicles and that could also include other partners, “We are talking to a lot of people,” said the leader in an interview last Friday with Bloomberg Television which is echoed Automotive News. He was referring to potential partners within the automobile industry and in the technology sector.

The new, fully autonomous entity would be 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.

De Meo says relations between Renault management and Nissan and Mitsubishi are “very good” pointing to initiatives for joint industrial projects involved in the Renaulution plan unveiled in January 2021. De Meo made the remarks after Renault raised its outlook for the year in a bid to end the company’s costly withdrawal from the Russian market.

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