Urgently, thermal builder is looking for a buyer, due to lack of money

It is an open secret. Renault intends to split into two separate entities. One was christened with the code name “Ampère”, and was supposed to group electrical activities. As for the second company, which is currently called “Horse”, it will continue to produce cars with good old internal combustion engines.

Things are becoming clearer about the “Horse” financing round, because the discussions between Renault and the Chinese Geely seem to be progressing well and a third thief seems to be on the way: the Saudi Aramco, the world leader in oil and relatively wealthy. . For this group, investing a few billion to get 20% of the shares of the new company is as painful as buying a bunch of carrots for a simple person.

A Saudi oil company and a Chinese manufacturer, most of the future thermal Renault

It is also not excluded that Emmanuel Macron spoke with Saudi King Mohammed ben Salman (MBS) during the official visit made by the latter to Paris in July. The sovereign probably did not take long to be convinced, given the lack of importance of the event for his country and his main business.

However, the signature of this phase, which should allocate 40% of Renault shares, as much as Geely and 20% of Aramco, should not drag. The date of the official agreement is unknown, but the IPO of “Ampère” on the stock exchange is already set for the fall of 2023.

this thermal Megane might be called the Horse of tomorrow.
This electric Megane could be called the Ampère of tomorrow.
This electric Megane could be called the Ampère of tomorrow.

All this seems very easy, and can be considered as an easy way to sell family jewelry, or at least a 123-year-old founder, and all with the support of the State, shareholder of the old girl. But this interest may be linked to a good reason, and maybe even two good reasons.

Renault needs money. It is not only the most profitable car manufacturer on the planet, far from it, and in addition it has left Russian feathers since its quick departure from AutoVaz. But in addition, the diamond had to invest tens of billions of euros in its transformation into electricity. This planned division into two entities is mainly intended to bring the money needed for these investments and Luca De Meo has certainly planned this operation since he arrived at the head of the brand. It even shows the head and the big letters of the Renaulution that was announced two and a half years ago. Even if these big letters were not announced to the public at the time of the publication of that roadmap. But why continue so quickly, when all electricity deadlines are set for 2035?

Under the stars of this Mercedes hide a little Geely.
Under the stars of this Mercedes hide a little Geely.

Because De Meo, its president Jean-Dominique Sénard and Bercy’s people who manage to follow the file with them, know that Renault is not the only manufacturer that wants to try this type of maneuver and earn money. Geely owns around 10% of Mercedes shares, as well as other Chinese giant Baic. The Stuttgart star is also in need of new money to power through and has also recently split in two. Although Mercedes wanted to go to the stock market to collect it, instead of going through a capital increase, the race for funds was launched in Germany, and throughout the automotive world. A race where the first to arrive is the first to serve, hence the hare-like start of Renault in this adventure, which wants to avoid becoming the tortoise in the sector.

Attention, relocation risk

Of course, this race is not smooth and without obstacles. They are not technological, but social. Because on the techno side, the future development of thermal energy is limited, and transfers to China will be short. The major industrialized countries should also, after Europe, switch to all electricity. The United States is thinking about it and California is leading the way. China has increased quotas in this area and should stop quickly.

Then there are the emerging countries, in India, Africa and South America, that run on oil. And the new purpose-built entities, whether they are called “Horse” or something else, will make thermal and cheap cars for these regions. With which worker? That is the question. But it’s a safe bet that the factories to manufacture them are not in our region.

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