Renault sees huge EV opportunity

French carmaker Renault has said the two business units that would result from its planned separation of electric and conventional car production could each employ 10,000 staff by 2023.

Renault said in a statement it was currently studying the option of creating two separate entities to manage a major shift towards fossil-free vehicles and would present progress of these studies at a capital market day in the autumn.

“The aim of these strategic reflections is to adapt each technology, drawing on the group’s strengths and expertise on its various markets and within the Alliance”, Renault said.

Renault reiterated that jobs dealing with EV production would be bundled inside France, while its workforce for conventional cars will be located abroad.

The move has also raised speculation that Renault may consider lowering its stake in Nissan.

Renault owns 43.4% of Nissan, which in turn has a 15% non-voting stake in the French company.

Renault’s potentially transformational revamp comes as the car manufacturer continues to find conditions challenging in the competitive European car market.

The company will almost certainly have to stomach a mid-year financial from pulling out of Russia, its second-biggest market before the war in Ukraine.

Indeed, the company said at the time of its announcement of the cessation of its Russian manufacturing that “a non-cash adjustment charge amounting to the accounting value of the consolidated intangible assets, property, plant and equipment and goodwill should be recorded at the time of the 2022 first half results. As of December 31, 2021, this value amounted to 2,195 million euros”.

Follow us on twitter: @risksEmerging

Twitter feed is not available at the moment.