Renault is navigating a pivotal shift as electrification reshapes the automotive landscape. Several brands are restructuring to maximize profitability in the electric era, with large strategic moves under way. One notable trend is the separation of electric vehicle operations from traditional internal combustion engine lines to optimize costs and accelerate new model development. Renault Group appears poised to explore this path, though no final decision has been confirmed. If Renault proceeds, interested buyers could emerge for portions of its combustion car business, including potential interest from Geely Group and an unnamed oil company.
Sources familiar with the talks describe the negotiations as complex and fluid. Renault faces questions about its alliance with Nissan, which may not be inclined to acquire a stake in the combustion segment. The plan for Ampere, Renault’s dedicated electric unit, envisions retaining majority control while divesting roughly 40 percent of the combustion-car operations. Initial reports also suggested Geely might seek an additional 40 percent, with the remaining 20 percent going to the unnamed oil partner.
Renault is expected to provide more detail on how these actions would connect with the broader business, including relationships with Nissan and Mitsubishi, which form the alliance. There is no indication that Nissan intends to follow Renault’s electric path in the near term, illustrating ongoing rivalry within the partnership as tensions over strategy continue.
More funds for electrification
The drive to electrify requires fresh capital, and Renault is highlighting the need to fund its electric division and any potential divestitures. Sharpening the focus on electrification could unlock immediate value by sharing investments with new partners. These capital moves aim to conserve cash while ensuring traditional vehicles remain viable and continue to generate earnings. The financial discipline sought through divestitures and new collaborations is meant to sustain long-term investments in charging, battery supply, and platform development across the brand.
Renault’s roadmap calls for Europe to host a 100 percent electric lineup by 2030. The alliance plans to invest around 23 billion euros by that year, targeting about 35 new models. The joint strategy centers on a common platform to streamline development across the three brands, though the precise execution after 2030 remains to be disclosed. Earlier reports from April have suggested Renault might own as much as 43 percent of Nissan, potentially selling part of that stake to fund electrification, yet there has been no concrete movement on that front.
Geely’s global footprint and strategic ambitions
Geely is among the world’s largest automotive groups, with significant holdings including a majority stake in Mercedes-Benz AG and ownership in Volvo Group, Lotus, and other ventures. The Chinese conglomerate has pursued a steady expansion plan that emphasizes growth across continents, supported by a diversified portfolio and long-standing relationships with key battery makers and technology partners. In the past year, Geely’s scale has enabled it to move quickly on investments and to seek strategic assets to complement its existing footprint in Asia and beyond.
If the Renault-Geely collaboration progresses, this could mark a notable reshaping of the regional and global supply chain. A future division of Geely’s assets with Renault could mirror a similar move seen earlier, reflecting a strategy to optimize each party’s strengths. Earlier this year Geely increased its stake in Renault Korea, a move that carried both strategic implications and financial impact. For Renault, the deal helped reduce exposure in a market segment that had underperformed, while Geely gained proximity to major battery suppliers such as LG Energy Solution, SK Innovation, and Samsung SDI, aligning its global battery strategy with a widening network of partners.
Geely’s ambitions extend beyond Europe and Asia; the group continues to seek growth opportunities as the industry accelerates toward electrification and digital platforms. The company’s readiness to secure material assets in key markets could influence how alliances evolve and which brands take priority in different regions. The dynamic between Renault, Nissan, Mitsubishi, and Geely will likely determine the pace and structure of future investments as OEMs navigate shifting consumer demand, regulatory pressures, and the economics of battery production.