21 Jun, 2024

Renault expects ICEs, EVs to best sell side-by-side for decade

GENEVA — The Renault brand will probably continue to offer internal-combustion vehicles alongside a separate lineup of full-electric cars for the next 10 years, CEO Fabrice Cambolive said.

Renault Group CEO Luca de Meo in early 2022 said that the Renault brand would be selling only EVs in Europe by 2030 — ahead of the EU’s zero-emission mandate in 2035 — but he has also said that the pledge is dependent on market conditions. Demand for EVs in Europe remains high, but the rate of adoption has slowed in recent months, raising questions about the willingness of consumers to continue to pay higher prices for battery-powered vehicles.

Renault is building out its lineup to have full-electric offerings in every segment, with the Renault 5 small car its latest addition. It will complement the petrol-powered Clio, Europe’s No. 2-selling small cars in 2023.

“Our strategy is to have ‘two legs’ in every segment — an ICE [internal-combustion engine] lineup with hybrid technology and a full-electric vehicle,” Cambolive told Automotive News Europe at the auto show here on Monday.

Renault’s main rivals in Europe are taking different approaches to the EV transition. Stellantis brands such as Citroen, Opel and Peugeot offer combustion

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Volvo may hand Polestar stake to its parent Geely

Polestar would need to inject an additional $1 billion over the next 12 months to keep it afloat, analysts at Bernstein said in a note last week, advocating the nameplate should not be independently listed.

Polestar last week said it plans to cut about 450 jobs globally, or about 15 percent of its workforce, amid “challenging market conditions.”

It also said in November that it would try to reduce its reliance on external help, publishing a revised business plan, which included getting additional loans from Volvo and Geely.

The news could raise questions about the viability of Polestar, which aims to become cash flow break-even in 2025. Some analysts have said it could make more sense to fold Polestar into Geely.

Volvo’s battles

Volvo, which previously owned Polestar as a sporty sub-brand, has been fighting its own battles and last year started to cut 1,300 jobs, part of a drive to reduce costs across global operations.

The automaker is also dealing with software development issues that have delayed the brand’s new electric EX30 and EX90 models.

Volvo on Thursday reported a bigger than expected rise in fourth-quarter operating earnings, posting operating income excluding joint ventures and associates of 6.7 billion

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