Renault plans to sell part of its combustion engine activities.
(Photo: Reuters)
Paris Renault apparently has two partners from China and Saudi Arabia in mind for the planned spin-off of the combustion engine business: As the Reuters news agency and several French media report, the company is in talks with the Chinese carmaker Geely and the Saudi Arabian oil company Saudi Aramco.
Renault did not want to comment on this on Thursday, but the information is confirmed in the carmaker’s environment.
The French carmaker said in the spring that it was considering splitting up its activities. A division based in France could therefore focus exclusively on the development and construction of electric cars. The classic business with combustion and hybrid vehicles would be spun off, affecting locations in Spain, Portugal, Turkey, Romania and Latin America.
Renault is looking for new partners for this unit, which has so far been called the “Horse” project. According to information from the Reuters news agency, the French could remain a minority shareholder in the combustion engine business with 40 percent.
Top jobs of the day
Find the best jobs now and
be notified by email.
Geely would also participate with 40 percent, Aramco with 20 percent. The Chinese carmaker and the Saudi Arabian state-owned company did not comment on the reports.
Renault needs money to expand e-mobility
Renault had already sold 34 percent of its South Korean subsidiary to Geely in May. With the spin-off, the French could get fresh capital to invest in electromobility.
>> Read also: Chinese car manufacturers want to conquer Europe – but they may be backing the wrong models
By 2030 at the latest, Renault intends to only sell electric cars in Europe. The realignment is part of the ambitious “Renaulution” reform program that CEO Luca de Meo has prescribed for the ailing carmaker.
With the outsourced combustion engine division, the French would at least keep a foot in the door on the classic car market. Because outside of Europe, combustion engines or hybrid vehicles are likely to play an important role for much longer. According to information from the newspaper “Le Monde”, Aramco and Renault could cooperate in the development of engines for synthetic fuels.
France tests how the public reacts
So far, however, nothing is certain – neither the details of the split nor possible partners. The information that has now been spread could be a test balloon by the government in Paris to assess public reactions to a possible collaboration between Renault and Geely and Aramco.
The French state has a 15 percent stake in Renault, saved the company from bankruptcy with a loan worth billions and is always well informed about what is happening at the car manufacturer. According to Le Monde, the Élysée Palace knew about the talks with Aramco when President Emmanuel Macron received Saudi Crown Prince Mohammed bin Salman at the end of July.
The French government is well informed about what is happening at Renault.
(Photo: AP)
Renault wants to provide information on the progress of the company’s restructuring at an event for investors in the fall. An open question is how the traditional alliance with Nissan fits into the plans of the French.
The Japanese carmaker has been a strategic partner of Renault since the late 1990s, and the companies are working closely together on electromobility. Whether Nissan will also participate in the planned division for the combustion engine business is anything but certain.
More: Renault sales collapse by almost 30 percent after leaving Russia