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Renault is considering a split to differentiate combustion and electricity

The executive of the French company is considering running a split important in Renault, which would result in a separation of into two business units, one focused on classic combustion engines (gasoline and diesel) and another that will revolve around electric motors, according to what they tell us from Reuters.

It is important to bear in mind that Renault is not the first company in the automotive sector to consider this possibility, but other car manufacturers have decided not carry it out because they believe it can be harmful for the resulting business unit that will focus on combustion engines.

Renault seems less averse to this division, mainly because its economic results are very stable, and because it is considering quite an interesting plan of action. The French company told shareholders that Renault’s all-electric division could be France-focused, and open to future partnerships, while the combustion engine unit (and also hybrids) would work outside France and would also be open to partnerships.

It is true that the electric car has become increasingly popular, and that this has allowed companies like Tesla to live a golden moment, but we must not kid ourselves, combustion engines still have, for better or worse, a few years to go. in front. The big players in the sector are aware of this, and that is why most have not made a radical leap in favor of the electric motor.

However, in Europe the pressures in favor of the electric car are increasing, and Renault has confirmed that it wants to become the first company in the old continent to market only vehicles with an electric motora goal that could be met, if all goes according to plan, in 2030.

Renault closed 2021 with higher-than-expected net income, which exceeded analysts’ expectations and placed it in a very favorable position. In total, the French company closed that year with net income of 888 million euros, and also reduced its fixed costs by 2,000 million euros between 2019 and 2021.

Its good results, and that cost reduction, their finances have improved, and this will allow Renault to pay the 4,000 million euros, which it received as state aid during the pandemic, at the end of next year. The deadline to pay off this debt is set in 2024, so the French company will arrive with more than enough margin.

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