Renault makes its “Revolution”, divides and allies with the Chinese of Geely

09:22 – “Our software partnership with Google has become very important. Soon we will only have fully connected factories, which will save a lot of time in the production of our cars. Renault is becoming a leader in this area.”

09:20 – “Renault Power will continue to be the heart of the group”, specifies Luca de Meo when appointing the new entity dedicated to internal combustion and hybrid engines.

09:18 “Renault was too complicated a company with too shared or dispersed responsibilities. Now we are going to take it to the next level. And we are giving ourselves the means to do it. In 2022, we are going to create €1.5 billion in cash.” We will remain above 3,000 million in cash permanently thanks to the creation of value”.

09:15 – “We need more cash than before because the investments needed to adapt to market changes are greater than ever. That is why we need to join forces, without delegating everything or buying innovation elsewhere”, said Luca de Meo.

09:10 – “We have to review our entire business model.” Luca de Meo explains that he wants to specialize the group’s branches to better adapt it to the new market constraints.

09:06 – “We will have launched 25 new models by 2025”, announces Luca de Meo. “We no longer need to reduce the sails,” he specifies. “Now that the restructuring phase is over, it is time to start the revolution. We want Renault to be one of the manufacturers that makes the most progress.”

09:03 – Director Luca de Meo opens the conference. He says that he hopes to bring Renault to profitability by 2025 and that there will be “no turning back” from this major reorganization of the group.

08:05 – Renault will strengthen its collaboration with Google and Qualcomm to develop its new Ampère entity, with the aim of designing the best possible platforms for its future electric vehicles and developing state-of-the-art software. Renault’s future platform will be based in particular on Qualcomm’s Snapdragon Digital Chassis and will take full advantage of Google’s connected services.

07:55 – It’s official, Renault separates its electrical and thermal activities. As planned, the new entity dedicated to electric cars will be called “Ampère” and will be listed on the stock market from the second half of 2023. The entity reserved for thermal vehicles (including hybrids) will finally be called “Power” and it will be shared with the Chinese from Geely. Ampère will bring together around 10,000 employees and is targeting a market capitalization of around €10 billion. It would already have a production capacity of 400,000 vehicles and is even aiming for a million vehicles a year. In particular, it will integrate the new Electricity division of Hauts-de-France where the new Renault 4 and 5 will be produced.

For its part, Power will produce and market thermal and hybrid vehicles, as well as components for this type of vehicle. The entity will bring together no less than 19,000 employees and will be divided 50-50 with Geely. It will have 17 factories and five R&D centers in France, Romania, but also in Sweden and South America. It aims at an annual production of more than five million vehicles and will integrate the Dacia but also Renault ranges equipped with internal combustion engines.

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Capital Market Day. This is the name of the big press conference that will be given this Tuesday, November 8 at 9 in the morning by Luca de Meo, CEO of the Renault Group, and Thierry Piéton, its financial director. The least we can say is that this conference is expected: the French group is due to announce its separation into two distinct entities, one (“Ampère”) focused on electric cars and the other (“Caballo”) dealing with thermal models. .

Logically, the former should prevail over the latter, but in any case, Renault is looking for new investors to support its development. The alliance with Nissan may not survive this shakeup, which would end years of French-Japanese infighting (even if Nissan remains a minority shareholder in the new Ampère company). As for the Horse division, it would see the arrival of the Chinese Geely as an equal shareholder with Renault. We are talking about a capitalization of around 10,000 million euros for the new company Ampère, which wants to go public next year, a figure above the current capitalization of Renault!

And the markets tremble before this conference: today, Monday, November 7, the price of Renault shares closed at +3.77% in the CAC40 pending tomorrow’s announcements. See you from 9 am on Tuesday, November 8 to find out the details of Renault’s strategy and its new partners.

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