Renault SA said on Tuesday that it expects to increase its operating margin as it detailed plans to separate its electric-vehicle business from combustion engine activities.
The French car maker
said it would create a stand-alone company focused on electric vehicles and software called Ampere, expecting to potentially list it on the stock market in France earliest in the second half of next year subject to market conditions. It plans to keep a majority and seek the support of possible strategic cornerstone investors.
Separately on Tuesday, Renault said it had signed a non-binding framework agreement with China’s Zhejiang Geely Holding Group Co. to form a shared new company that will make hybrid powertrains and internal combustion engine powertrains.
While restructuring its operations, Renault aims for a higher operating margin over the next years. It is targeting a margin above 8% in 2025 and above 10% by 2030. It has previously aimed for a 2025 margin of at least 5%.
Renault also backed this year’s guidance, which includes an operating margin of above 5%.
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