Renault considering splitting into EV and combustion brands

Renault has announced it is considering separating its combustion vehicle business from its electric cars, with the latter forming a new auto brand that could go public in the second half of 2023.
 
Announcing that "all options were on the table" for carving-up the 123-year-old French car-maker, Renault finance chief Thierry Pieton said that all plans would be subject to approval from alliance partner Nissan.

 
The split has been sold to investors, which include the French government, as one of the ways that Renault will be able to catch up in the spending race to zero-emissions vehicles, which is currently being won by both Tesla and the Volkswagen Group in Europe.
 
Also driving the radical approach is the fact Renault posted better-than-expected revenue in the first quarter of 2022 as higher prices and increased EV sales helped offset the impact of COVID, the global semi-conductor shortage and the war in Ukraine.

 
A similar move announced by Ford last month is also fuelling desire among Renault execs for a new EV brand, although the Blue Oval stopped short of announcing it would float the electric arm of its business.
 
Reports also indicate that as well as splitting its business to boost its share price, Renault is also considering lowering its stake in Nissan.
 
Originally, Renault was expected to have Q1 revenues of around €9.6 billion ($A14.3b), but in the end the French brand – which also owns Dacia and Lada – returned revenue of €9.75 billion ($A14.5b). Despite out-performing analyst estimates, Renault's earnings still fell 2.7 per cent from the year before.

 
The drop overall reflected a 17 per cent decline in sales, with the number of cars sold falling to 552,000 – its lowest volume since 2009.
 
The good news is that sales of Renault EVs and hybrids rose 13 per cent, with electrified vehicles accounting for 36 per cent of overall volume. Price rises across the board saw the average transaction price of Renault Groupe cars increase by 5.6 per cent over 2021 levels.
 
Renault says impacts of the global semi-conductor crisis will continue to be felt this year as production falls by around 300,000 vehicles, mostly in the first half of the year.
 
Despite announcing that it will make fewer cars in 2022, the Parisian-based car-maker says its order book remains at a 15-year high with 3.9 months of pre-sales.