Renault breaks its organization and will be structured in several activities

On Tuesday, November 8, with the presentation of the third -and final stage- of “Renaulution”, his strategic plan for Renault, Luca de Meo, CEO of the car manufacturer, poses a beautiful mathematical problem: the sum of the parts can it be that she does more than everything? This is the opposite of what Aristotle said. But the boss doesn’t care. He is convinced that by now organizing Renault into five entities, and opening some of them up to outside shareholders, they will achieve a significantly higher total value than the group is on the stock market today.

Also read: Article reserved for our subscribers Renault clarifies its plan to separate its electrical and thermal activities

At the close of the markets, on Monday, November 7, the diamond brand was worth 9,300 million euros, much less than Stellantis (44,000 million), Volkswagen (53,500 million) and, above all, Tesla (627,000 million euros). However, these amounts reflect the means available to manufacturers to invest and face the transition from the automotive market to the electric one. Therefore, it is necessary to remove the Renault ones.

The first entity, Ampère, will bring together all activities in electric vehicles and software. With its 10,000 employees, it intends to go public, on Euronext, from 2023. But before that, its capital will be open to a strategic partner, the American microprocessor manufacturer Qualcomm, which develops Snapdragon chips, and wants to increase the computing capacity of the on-board computer for electric cars.

Incidentally, Renault is strengthening its partnership with Google and its Android system. By equipping your cars in this way, you will improve predictive maintenance and develop insurance based on usage and driving behaviour. The software system of an electric car must be able to be updated periodically, like that of a telephone, to improve and add functionalities and, above all, to manage the battery well.

Nissan and Mitsubishi also plan to enter the capital of Ampère, which could be worth, according to internal estimates, 10,000 million euros, more than the value of Renault today. ” When arrive, explains Luca de Meo, I asked what share Renault had in the electric vehicle value chain. They told me that only 10%, when we were pioneers. Today the group already captures 35% and with Ampère we want to reach 80%. » The group’s French sites will work mainly for this entity.

A high-end brand and a bank

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