The Renault Group, a prominent player in the European electric vehicle (EV) and software sector, has officially announced the cancellation of the planned Initial Public Offering (IPO) for its subsidiary, Ampere. This decision also reaffirms the Group’s commitment to its EV and software strategy.
Ampere, envisioned as a pioneering pure player in the European EV and software market, was established by Renault Group to accelerate the democratization of electric vehicles across Europe. Since November 1st, 2023, Ampere has been functioning autonomously, reflecting the Group’s strategic intent to foster a more competitive, agile, and innovative business structure.
Originally, Renault Group had scheduled Ampere’s IPO for the first half of 2024, contingent upon favorable market conditions. However, current equity market conditions have led the Group to reassess the IPO’s viability, concluding that these conditions are not conducive to achieving optimal outcomes for Renault Group, its shareholders, and Ampere.
Renault’s self-funded strategic plan, Renaulution, has been instrumental in generating sustainable cash flows, crucial for the development of Ampere. The Group’s enhanced performance over recent semesters has exceeded initial expectations, providing greater financial flexibility and independence.
The cancellation of the Ampere IPO process is a strategic response to the current market environment and the Group’s robust cash generation capabilities. Despite this change in strategy, Ampere’s team remains dedicated to executing its ambitious agenda. Key focus areas include:
- A significant reduction in EV costs by 40% in the next generation, aiming for improved vehicle pricing.
- Advancements in technology, particularly software and AI solutions (OpenR Link, Reno Avatar, Software-Defined-Vehicle).
- Major vehicle launches are on the horizon, including Scenic, Renault 5, Renault 4, Twingo, and two additional models.
- The development of Europe’s most efficient EV industrial ecosystem, already receiving substantial investment.
Renault Group intends to continue funding Ampere until it achieves breakeven in 2025, maintaining its targets set during the Ampere Capital Markets Day. This strategic decision will not impact the financial guidance or capital allocation strategy of Renault Group.
Luca de Meo, CEO of Renault Group and Ampere, remarked, “I’m extremely proud of our teams who created in less than 2 years the best answer to top global players competition with Ampere. By setting up a 100% focused EV and software business, we built in record time an agile and competitive entity. We have the start-up mindset which allows us to constantly innovate. This is exactly what will make Ampere successful in this new challenging environment. Today, we took a pragmatic decision. We are all focused on executing our strategy and building our track record to create value for all our stakeholders.”
Luca de Meo and Thierry Piéton, CFO of Renault Group, will conduct a visio conference at 6.30pm Paris time, accessible via conference streaming.
About Renault Group
Renault Group, a leader in global mobility, collaborates closely with Nissan and Mitsubishi Motors. It boasts an extensive range of brands – Renault, Dacia, Alpine, and Mobilize. With a presence in over 130 countries and 2023 vehicle sales surpassing 2.235 million, the Group employs nearly 106,000 individuals. Renault is committed to a transformative journey focused on new technologies and competitive electrified vehicles, aiming for carbon neutrality in Europe by 2040. For more information, visit Renault Group’s website.