On Tuesday, Renault announced a major overhaul by separating its activities into five businesses. Besides, the French car maker also announced to deepen ties with China’s Geely and spin off its electric vehicles unit through a stock market listing next year.

On Tuesday, the carmaker said it targeted operating margins of 8 per cent for 2025 and rising to more than 10 per cent in 2030, from 5 per cent expected this year.

Renault also stated it plans to reinstate dividends from next year after a three-year hiatus. The company aspires to generate more than 2 billion euros of cash a year between 2023 and 2025.

It is believed that the combustion engine business Renault will be housed in a 50-50 joint venture with Geely. Reportedly, Nissan, the company’s long-standing partner, is expected to take a stake in the EV venture, codenamed ‘Ampere’.

Shares of Renault plunged more than 4 per cent as it gave no details on the state of play of talks with Japan’s Nissan on the future of their partnership.