Reuters reported, citing its own sources, that Renault will announce the creation of two new companies in the autumn. One will be based in France and will develop electric vehicles, the second will be transferred to manage factories for the production of internal combustion engines and transmissions in Spain, Portugal, Turkey, Romania and Latin America.
Renault itself will be the main owner of the electric vehicle division. However, in the company dealing with internal combustion engines, the French will own only 40 percent, and a controlling stake is expected to be sold to Chinese companies Geely and PetroChina.
Geely is counting on 40% of the securities, another 20% will go to an oil and gas concern interested in developing hydrogen technologies. At the same time, Nissan, which is Renault's partner in the Renault-Nissan-Mitsubishi alliance, allegedly withdrew from the deal.
The division of the business will allow Renault to free up funds for the development of electric vehicles, while Geely will be able to strengthen its position in the global ICE market. However, the plan is not final, so Renault is considering other transformation schemes.
By the way, back in the spring, Geely agreed with Renault to buy a 34.02% stake in Renault Motor Korea for $200 million. According to insiders, Geely plans to organize the export of cars to the United States through South Korea, since there is a free trade agreement between the United States and South Korea.
Recall that Geely owns the Swedish Volvo Cars and the British Lotus, is a co-owner of the manufacturer of electric vehicles Polestar, and also has a stake in Mercedes-Benz.
Source: Reuters
