Renault receives partnership proposals for unit-source combustion engines

Bbringing in partners from the internal combustion engine side Renault aims to free up funds to invest in electric vehicles, a technology it pioneered with Nissan 7201.T and Mitsubishi 7211.Tbut where it is now eclipsed by pure players like Tesla TSLA.O.

Renault intends to retain the majority of its electrical division, which will employ around 10,000 people and could go public via an IPO in the second half of 2023.

However, it will only remain a core shareholder, not a controlling shareholder, of the combustion engine unit, which will have a similar workforce, two other sources said. familiar with the plans.

One of the sources said that Renault could retain a 40% stake.

Renault declined to comment.

At a trading day this fall, the automaker will outline its plans for its France-based electric arm and overseas-based combustion unit.

This entity will include factories producing engines and gearboxes for gasoline and hybrid cars in Spain, Portugal, Turkey, Romania and Latin America.

Among potential partners for its combustion engine business, CEO Luca de Meo in April cited Nissan, other automotive groups and long-term investors.

De Meo is due to visit Japan next month to discuss possible Japanese participation in his electric and combustion engine projects.

Renault is undergoing a major restructuring aimed at cleaning up its finances and has recently signed partnerships beyond its historical alliances with Nissan, Mitsubishi and Mercedes MBGn.DEas with the Chinese company Geely Automobile Holdings 0175.HK.

This month it sold 34% of its South Korean unit to Volvo Cars owner and Mercedes shareholder Geely.

With Geely, Renault plans to develop hybrid vehicles that will be assembled at its Busan plant in South Korea.

(Reporting by Gilles Guillaume; writing by GV De Clercq; editing by Jason Neely)

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Kevin A. Perras