Renault’s plan for an electric-vehicle spinoff tends to get more attention, but the French auto maker’s internal-combustion-engine carve-out might generate more shareholder value in the foreseeable future. It is a case study in corporate transition worth watching as Ford moves tentatively down a similar road.
On Tuesday, Renault gave a full account of a radical restructuring it has had in the works for months. It is separating out its EV business with a view toward a minority initial public offering in the second half of next year, depending on market conditions. And it is creating a new ICE powertrain company in partnership with Chinese automotive investor Geely. Between these two extremes lie Renault’s core businesses of manufacturing and financing traditional vehicles in Europe and emerging markets, which it will wholly own within a new reporting structure.
Hotels.com November 2022 Deals: Save 20% or more!
- Best Buy:
Save 15% or more on the Best Buy deal of the Day
November Sales Event - Members save 20% or more
SHEIN Black Friday coupon code - 30% off
Subscribe and get $20 off your at Journeys
25% off all orders over $15 with DoorDash coupon code