Plans to split the operations of struggling automaker Renault are taking hold after talks with French unions.
French automaker Renault SA will go ahead with its plans to carve out electric and combustion-engine businesses even without its Japanese auto-making partner Nissan. A plan to divest the struggling automaker’s operations is gaining traction as it held talks with French unions and top management of its alliance partners – Nissan and Mitsubishi Motors Corp.
Renault Chief Executive Officer Luca de Meo has said that the company has to carry out the process and it has opened doors for them for each project. In an interview with Bloomberg television, he said, “In the end it is their decision whether they want to jump in the boat, but the train is leaving the station.”
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De Meo has pledged to reveal details of the transformational plan in the fall after “transparent” discussions with Japanese companies — Nissan and Mitsubishi. Hundreds of people are working on projects that go beyond spinning off EV operations and can involve other partners, he said in the interview. “We are talking to a lot of people,” he said, including potential partners from the automotive and tech industries.
De Meo also said that relations between Renault and Nissan and Mitsubishi management are “very good”, and pointed out that upcoming initiatives for joint industrial projects are in the pipeline.
In a separate development, Renault raised its financial outlook for the year to draw a line under the company’s costly withdrawal from the Russian market.
First published date: 31 July 2022 12:29 PM IST