(Bloomberg) -- Renault SA fell for the second straight day on Wednesday, as several analysts said the French carmaker’s radical overhaul plans were overly complex and could pose governance risks.

The stock was down 4% as of 3:30 p.m. in Paris, extending the previous day’s 3.3% slump. Having touched a one-month intraday low, Renault was the No. 2 decliner in France’s CAC 40 Index. 

The losses come after Renault, the maker of the Zoe and Megane E-Tech models, presented a complex split of its electric-vehicle and combustion-engine businesses. Known now as Ampere and Power respectively, these divisions will be backed by outside investors, with the latter 50% owned by China’s Zheijiang Geely Holding Group. 

Renault is also creating three other focused business units, including one for its high-end Alpine sport-car brand.

The plan has caused unease among some analysts, with Jefferies analyst Philippe Houchois saying Renault was “trading complexity for more complexity.” 

Houchois acknowledged that separating Renault’s EV and combustion engine businesses “is critical to the investment case,” but said “creating 5 different units, each with their own P&L, multiple alliances and minorities, introduces undue complexity for governance and valuation.” 

Automakers such as Renault are being forced to reinvent their strategies to navigate the difficult and costly transition to electrification, especially after the European Union’s landmark deal to effectively ban new combustion-engine cars from 2035. Ford Motor Co., for example, said in March it would split its fast-growing EV operations from legacy combustion-engine assets as it cut costs and streamlines operations.

Renault Chief Executive Officer Luca de Meo says the revamp will help the company become more agile, allowing it to jump on tech innovations more quickly, as the carmaker tries to narrow the gap with bigger rivals. De Meo aims for an initial public offering of the EV business Ampere sometime late next year as he seeks fresh funds for investments. 

But the logic for the Ampere IPO “is not really convincing,” Houchois of Jefferies wrote. “We understand the appeal of a market value for legacy-free Ampere” but “ an IPO “takes value away from current shareholders,” Houchois wrote.

Other analysts share some of those concerns. 

“We do wonder what might happen to legacy Renault, which will predominantly be driven by Power, post an Ampere stock listing,” RBC analyst Tom Narayan wrote in a note.

However, some analysts were more positive. Oddo BHF analyst Michael Foundoukidis called it “a very audacious but also pragmatic approach.” 

The “organization around five business units -- appear, in our view, value creating for shareholders, always assuming good execution,” he told clients. 

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