France's Renault Plans To Spin-Off Electric Vehicle Unit, Mulls IPO

The French carmaker Groupe Renault RNLSY said that it is considering "all options," including a possible public listing in the second half of 2023, for separating its electric vehicle (EV) arm, according to Reuters.

Renault's finance chief Thierry Piéton further added that any plans were subject to approval from its Japanese alliance partner Nissan Motor Co. NSANY

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Renault has been pushing its plans to split the EV business as it seeks to match up with rivals such as Elon Musk-owned Tesla Inc. TSLA, Volkswagen AG VWAGY, and Ford Motor Company F, among others. 

Ford spinned-off its electric vehicle business last month, naming it Model e.

This came after Renault Group revenue dropped 2.7% in the first quarter but was better than expected amid the impact of the Russian Invasion of Ukraine and an ongoing global shortage of semiconductors.

Meanwhile, the drop in first-quarter revenue followed a 17% decline in Renault's vehicle sales to 552,000 vehicles — the lowest quarterly sales since the global financial crisis in 2009.

Photo: Courtesy of Renault