Renault Announces Unit Ampere EV Spin-Off as Firm Plans Electric Future

French carmaker Renault will pitch to investors on Tuesday for its planned, two-pronged green overhaul: a new electric car unit and a hybrid and hybrid subsidiary.

The electric vehicle market is expected to grow rapidly due to consumer concerns about climate change, putting pressure on manufacturers to develop less polluting products.

The European Union agreed last month to phase out new CO2-emitting cars by 2035, a move that will tax the production of electric prototypes on the continent.

At an investor day in Paris on Tuesday, Renault is expected to unveil its green revolution.

The leading restructuring unit of car designer Ampere, the split-off is expected to employ around 10,000 workers in France and produce electric vehicles in the north.

Renault plans to invite investment from Ampere but will remain a majority shareholder.

Renault also intends to consolidate its technical, manufacturing, and research and development activities for its hybrid and internal combustion vehicles into a company called “Horse”.

The subsidiary is expected to employ approximately 19,000 people across Europe, China and South America.

Chinese automaker Geely is being considered as part of the company.

“We are designing a flexible and dynamic organization that will manage the volatility and rapid technological development of our time,” said Renault CEO Luca de Meo.

Investors on Monday expressed interest in Renault’s turnaround, with the group’s shares up 3.77% on the Paris stock market.

The company suffered a historic loss in 2020 and its recovery was hampered by its withdrawal from Russia following Moscow’s invasion of Ukraine.

The number of traditional car manufacturers is low compared to new players in the market specializing in electric cars such as Elon Musk’s Tesla or the Chinese company BYD.

Renault still needs big investments to accelerate its electric transformation, according to the plans it presented in 2020.

American giant Ford took similar steps, announcing the creation of the “Ford Model E” earlier this year.

Renault sells cars with internal combustion. In the first nine months of 2022, hybrid and electric vehicles will represent 38 percent of product registrations in Europe, an annual increase of 12 percent.

The planned separation of electric and general production at Renault has affected labor unions after several job cuts.

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