Mobility Portal, Spain
Date: January 31, 2024
Mobility Portal Favicon
By Mobility Portal

Renault cancels Ampere’s initial public offering due to EV market conditions

The company has reevaluated the situation, indicating that the prevailing conditions in the equity market do not align with their optimal strategic approach for the benefit of Renault Group, its shareholders, and Ampere.

Renault Group has recently made a strategic decision regarding its electric vehicle (EV) and software subsidiary, Ampere.

Established as the only European EV and software pure player, Ampere’s primary objective is to expedite the democratization of EVs across the continent, outpacing other EV pure players in the market.

From the outset, Renault Group adopted a distinct approach by developing Ampere as a separate business unit, equipped with a dedicated team focused solely on EV and software advancements.

Since November 1st, 2023, Ampere has been operating as an autonomous business, allowing the group to evaluate operational and industrial benefits daily.

In 2022, Renault Group announced plans for an initial public offering (IPO) for Ampere, originally scheduled for the first half of 2024, contingent on market conditions.

However, the group has reevaluated the situation, citing that current equity market conditions do not align with their optimal strategy for the benefit of Renault Group, its shareholders, and Ampere.

Renault Group emphasizes that its strategic plan, Renaulution, is self-funded.

The financial results for 2023 reaffirm the group’s ability to generate sustainable cash flow, supporting its future endeavors, including the development of Ampere.

Recent semesters have witnessed a significant improvement in Renault Group’s performance, surpassing initial expectations and providing the group with enhanced flexibility.

Given the current equity market conditions and improved cash generation, Renault Group has decided to cancel the Ampere IPO process.

Despite this, the Ampere team remains committed to executing its strategy and achieving its goals.

Key focus areas for Ampere include:

  1. Cost Reduction: Ampere has initiated a clear roadmap to reduce EV costs by 40% in one generation, gradually improving the price positioning of its vehicles.
  2. Technological Differentiation: Emphasizing software and AI solutions, Ampere aims to stand out in the market with offerings such as OpenR Link, Reno Avatar, and Software-Defined-Vehicle.
  3. Upcoming Launches: Anticipated releases include Scenic, Renault 5, Renault 4, Twingo, and two additional cars, showcasing Ampere’s commitment to innovation.
  4. Industrial Ecosystem: Ampere is working towards creating the most compact and efficient industrial EV ecosystem in Europe, already making substantial investments.

Renault Group plans to fund Ampere’s development until it reaches breakeven in 2025.

Luca de Meo, CEO of Renault Group and Ampere.

All the targets set during Ampere Capital Markets Day remain confirmed, and the decision to cancel the IPO has no impact on Renault Group’s financial guidance or its capital allocation strategy.

Luca de Meo, CEO of Renault Group and CEO of Ampere, expressed pride in the rapid development of Ampere, emphasizing the startup mindset that allows them to constantly innovate.

De Meo assured stakeholders that the decision to cancel the IPO is pragmatic, and the focus remains on executing the strategy to create long-term value.

Separator Single Post

Leave a Reply

Your email address will not be published. Required fields are marked *