French car group Renault will review its business structure. The diamond company confirmed this Tuesday that its activities will be conducted through two subsidiaries whose capital will be open to foreign partners or investors, EFE agency reported. One of the subsidiaries will focus on electric cars and software, which will go on sale next year. The second will focus on its traditional business, combustion cars, and the shareholder will be the Chinese group Geely.
As for the first, as Renault’s statement explains, it consists of Renault and the American group Qualcomm Technologies. It will be called Ampere and they will try to “co-develop a centralized electronic architecture for a “software defined vehicle” for electric vehicles.
At the same time, Renault announced that it is expanding its collaboration with Google through a “software-defined vehicle”. It will do this through “cooperation in the Android Automotive operating system and Google’s cloud technologies, which becomes the group’s main cloud service provider.”
Ampere, according to EFE, plans to go public in the second half of 2023, provided market conditions allow.
It will be based in France and will be dedicated to the production and marketing of 100% electric vehicles under the Renault brand. It will add 10,000 employees, of whom about 3,500 are engineers, half of whom specialize in computer programs. At the moment, the company has not given details about how the subsidiary will develop in other countries, such as Spain.
Sharing combustion with Chinese giant Geely
As for the internal combustion engine subsidiary, both Renault and the Chinese group Geely will own 50% of the shares. This includes the car business with thermal and hybrid engines, with an initial turnover of 15,000 million euros and a sales volume of 5 million per year, which, according to the group, will continue to represent “up to 50% of global sales.” Private cars even on the horizon of 2040″.
This business unit will have 17 factories, five R&D centers in Spain, Romania, Sweden, China and South America with 3,000 engineers and 19,000 employees. Within it will be the low-cost car brand Dacia, which already generates an operating margin of more than 10% and aims to increase it to 15% by 2030.
This conglomerate will have a van division, with two “disruptive” projects, which are the development of vehicles running on decarbonized hydrogen, through a joint venture with the Plug company, which will be launched in 2026.
Renault will remove this business from its perimeter from the second half of 2023, baptized the Horse project, with which it hopes to obtain an increase in productivity, reduce fixed costs and at the same time improve the balance sheet of the group.
On the other hand, the French manufacturer is looking to strengthen its Alpine sports brand with a range that will be all-electric from 2026 and international ambitions, as it expects half of its growth to come from new markets outside Europe, potentially including the north. America and China.
Source: El Diario