Renault Reorganises Towards Electric Future
Muhammad Irfan Published November 08, 2022 | 01:10 PM
Paris, Nov 8 (UrduPoint / Pakistan Point News - 8th Nov, 2022 ) :French automaker Renault presented its green revamp to investors Tuesday, splitting its operations in two: a new electric vehicle unit and a subsidiary for thermal and hybrid assets that will pair up with China's Geely.
The electric vehicle market is expected to grow rapidly in response to consumers' worries about climate change, putting pressure on manufacturers to develop less polluting products.
The European Union last month agreed to phase out new CO2-emitting vehicles by 2035, a move set to turbo-charge the production of electric prototypes on the continent.
At an investor day in Paris on Tuesday, Renault outlined its green transformation.
The car maker's flagship division following the reorganisation will be Ampere, which will produce electric vehicles and employ around 10,000 staff in France.
Renault plans to invite investment in Ampere but would remain the majority shareholder.
Ampere is being prepared for an initial public offering on the Euronext Paris in the latter half of 2023, Renault said.
Renault also intends to combine its technological, manufacturing and research and development activities for its hybrid and internal-combustion vehicles with Chinese automaker Geely in a new entity, "Horse".
The groups will share the division to design, develop, produce and sell components and systems for hybrid and internal-combustion vehicles, employing 19,000 people across Europe, China and South America.
"We are designing an agile and innovative organisation to manage the volatility and accelerated technological evolution of our time," said Renault CEO Luca de Meo.
Investors on Monday expressed their interest in Renault's transformation, with the group's shares climbing 3.77 percent on the Paris stock market.
The company suffered a historic loss in 2020 and its recovery was destabilised by its withdrawal from Russia following Moscow's invasion of Ukraine.
The value of traditional car manufacturers pales in comparison to new players on the market specialising in electric vehicles such as Elon Musk's Tesla or Chinese firm BYD.
Renault still needs large investment to accelerate its electric transformation, according to plans it presented in 2020.
US giant Ford has taken similar steps, announcing the creation of the "Ford Model E" earlier this year.
Renault's sales of traditional internal-combustion vehicles are falling. In the first nine months of 2022, hybrid and electric vehicles represented 38 percent of the brand's registrations in Europe, a year-on-year increase of 12 percent.
The planned separation of Renault's electric and conventional production has concerned trade unions after several waves of job cuts.
Related Topics
Recent Stories
PTI to stage nationwide protests against alleged electoral frauds
Senate continues discussion on Presidential address to Joint Sitting of Parliame ..
Masood Khan calls for Pak-US cooperation for regional peace
Interior Minister starts Margalla Trail Patrol for security
Currency Rate In Pakistan - Dollar, Euro, Pound, Riyal Rates On 26 April 2024
Today Gold Rate in Pakistan 26 April 2024
ICC Womens T20 World Cup Qualifier, Match 2: Ireland Women open with Comfortable ..
Robinson, bowlers help New Zealand go 2-1 up against Pakistan
Shahzeb Chachar to hold khuli kachehri on April 26
Heatwave amid Israel's aggression in Gaza brings new misery, disease risk
Tourism must change, mayor says as Venice launches entry fee
Court adjourns Judicial Complex attack case till May 17
More Stories From Miscellaneous
-
Modern Education Techniques: A pathway to achieve economic development
4 hours ago -
Kite Flying: From cultural festival to deadly sport
4 hours ago -
PDMA predicts gusty wind, rain with thunder, hails
3 days ago -
Iranian president Raisi given guard of honour at PM House
4 days ago -
Intellectuals, writers accolades Naseer Mirza on his literary contribution
5 days ago -
Bahawalpur Adabi Sangat hosts memorable mushaira
5 days ago
-
Cattle farming vital to alleviate poverty in rural areas
5 days ago -
Pakistan: A land of tourism, archeological wonders
5 days ago -
Transforming education sector: from job hunters to job creators
7 days ago -
Amjad Bobby remembered on 19th death anniversary for timeless contributions to music
11 days ago -
Legendary actor Nadeem’s 26 films released on Eid-ul-Fitr days in 50 years
12 days ago -
Besant Hall Cultural Centre to celebrate evening with Sanam Marvi on 26 April
12 days ago