Renault ahead of schedule in EV partnerships – CEO

Renault ahead of schedule in EV partnerships – CEO

By Jill Guillaume

PARIS (Reuters) – French automaker Renault On Thursday, the CEO of EPA said the company will control 80 percent of the electric vehicle value chain before achieving its 2030 goal, as it develops partnerships in batteries, electric motors and power electronics.

Luca de Meo said research and development costs were too high to do alone and drew parallels with Apple’s (NASDAQ 🙂 business model, which he described as relying on a variety of partnerships when he first ventured into smartphones.

“Our old recipes are no longer enough,” de Meo said at the Autos and Sports Conference in Stuttgart, Germany. “The huge investments they require (transitions to electricity) are not sustainable.”

“We want to participate in investment, development and co-creation.”

Renault is pressing ahead with its plans to split the electric vehicle (EV) and combustion engine business as it seeks to catch up with competitors such as Tesla (NASDAQ) and Volkswagen (ETR) in the race for cleaner driving.

It expects to reveal a detailed outline of the new EV entity at Capital Markets Day this fall.

Three years ago, Renault controlled only 10% of the electric vehicle value chain. That number now stands at 30%, de Meo said, and will reach 80% well before the end of the decade.

He added that Renault was building partnerships “along the electric vehicle value chain”.

Alliance partners Nissan (OTC:) and Mitsubishi have yet to say whether they will share Renault’s future electric vehicle unit.

Nissan CEO Makoto Uchida told the newspaper this week that discussions continued about the Japanese group’s involvement, whether through investment or otherwise.

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