PARIS(Reuters) – French car maker Renault said it aimed for an 8% operating margin by 2025 thanks to a plan to split its combustion engine activities from its electric vehicle business, though such a plan still needs the go-ahead from its alliance partner Nissan.
Renault, ahead of a long-waited investor presentation on Tuesday, set the 8% goal for 2025, with this then raising to more than 10% in 2030, from 5% expected this year.
But it still needs to give details about its electric vehicles unit, in which Nissan is expected to take a stake whose size is still being discussed, and a separate combustion engine business which it said on Tuesday it would split 50-50 with Chinese rival Geely.
Renault is pursuing a complex two-pronged restructuring. On one hand, it is aiming to revamp its alliance with Nissan and convince the Japanese automaker to invest in a new electric car unit called Ampere.
At the same time, it also plans to separate out its gasoline-car business, code-named “Horse”, and is seeking to sell a large part of it to Geely.
Investors will be looking for details on the state of play for both sets of negotiations on Tuesday when Renault Group Chief Executive Luca de Meo delivers an update on the French automaker’s strategy and financial projections. But details have been sketchy so far, and Renault’s statement on Tuesday morning only said discussions with Nissan were ongoing.
(Reporting by Gilles Guillaume; Writing by Silvia Aloisi; Editing by Sudip Kar-Gupta)
