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The potential structural overhaul at Renault would be another wrinkle in the alliance since the three-member partnership was nearly destroyed by the 2018 arrest of its former leader, Carlos Ghosn, in Japan.
The three-member alliance is working to cooperate more effectively as automakers globally grapple with the expensive shift to electrified, autonomous vehicles. The manufacturers are looking to use common batteries and other key components to bring cost-savings.
The alliance has “substantial synergy potential although the companies had material challenges to realize this in the past,” rating firm Moody’s Corp. said in an April 6 report reaffirming Renault’s negative outlook. It pointed to the carmaker’s low returns, slow progress on turning around and suspension of the Russia operations.
At last week’s meeting with analysts, de Meo raised the possibility of splitting Renault into a new mobility company made up of EV and car-sharing assets, and a legacy entity, Stifel analysts including Pierre Quemener wrote in a note. “The CEO added that the latter could be combined with the ones of a potential partner,” the note said. “An IPO of New Mobility assets could be contemplated for 2023.”
Shareholding imbalance
It’s unclear whether the move would change the shareholding imbalance within the alliance that has long stoked tension. Renault holds a 43 percent stake in the bigger Japanese company with voting rights, while Nissan owns 15 percent of Renault and has no voting rights.
Selling all or part of the stake in Nissan would generate as much as 7.2 billion euros for Renault, which is about the same as its current market value. Nissan halted dividend payouts in 2019, depriving Renault of a key source of cash.
In January, the alliance outlined a plan to deepen operational ties and invest in electrification.
Renault last month halted its Moscow plant and said it’s considering the future of its longstanding AvtoVaz venture while revising downward its financial outlook for this year.
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