Renault plans to create separate electric vehicle business

Renault electric vehicle

Carmaker Renault said it is studying the option of creating two separate entities to manage a major shift towards electric vehicle business.

Renault sold 552,000 vehicles in the first quarter of 2022. Renault Group revenue fell 2.7 percent to €9.7 billion for the first quarter of 2022.

“The aim of these strategic reflections is to adapt each technology, drawing on the group’s strengths and expertise on its various markets and within the Alliance,” Renault said.

Renault said that jobs dealing with EV production would be bundled inside France, while its workforce for conventional cars will be located abroad.

Renault CEO Luca de Meo wanted to press ahead with plans to split up the group despite potentially costly uncertainty over its interests in Russia, Reuters news report said.

The French automaker first outlined its strategy shift in February playing catch-up with rivals like Tesla and Volkswagen.