Renault cancels IPO for its electric vehicle division Ampere

Despite promising a public listing for Ampere in 2022, the French automaker has made the U-turn citing changing market conditions

Renault has decided to cancel the initial public offering (IPO) for its special electric car and software division ‘Ampere’, claiming that market conditions are no longer suitable to do so.

Plans for the public listing were announced by the French car manufacturer back in 2022, with Renault betting on Ampere to exist as the “only European EV and software pure player”.

It has been operating as a separate entity since being founded in November 2022. In September last year, Luca de Meo, CEO of both the Renault Group and Ampere, had said the IPO could be worth up to 10 billion euros, calling the change a “fundamental reshuffle of our business model.”

And sure enough, Ampere slotted in perfectly into his electrification plans for Renault, which the company has been calling ‘Renaulution’, and has backed it up so far with the release of some impressive cars, such as the Renault Megane E-Tech, and the much-anticipated and set to launch later this year, the Scenic E-Tech.

> The Renault Scenic returns as a 100% electric crossover

The Ampere platform is also being used to develop Renault’s next-generation of cars, namely the Renault 4 and 5 E-Tech. Besides, it has also been employed in manufacturing two of Nissan’s 100 per cent electric vehicles, the Ariya and Micra.

However, Renault has now blamed the sluggish European EV market to take this decision, at a time when Chinese EV makers are starting to make more and more inroads into the continent to meet drivers’ demands.

Luca de Meo said: “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.”

In a statement the Renault Group said it would continue to fund the development of Ampere until it reaches break-even in 2025.

“Renault Group strategic plan, Renaulution, is self-funded and the results which will be released for 2023 confirm the group’s ability to generate sustainable cash flow to finance its future (including Ampere development),” the statement added.

“Considering both current equity market conditions and stronger cash generation, Renault Group has decided to cancel the Ampere IPO process.”

> Ariya Nismo becomes the most powerful Nissan EV

Renault, however, has maintained that other companies such as Nissan and Mitsubishi were still interested in investing in Ampere even if the company did not proceed with an IPO.

Surprisingly however, the carmaker’s stocks jumped by five per cent today after it revealed plans to pull the plug on Ampere.

It remains to be seen the level of impact this slight downturn in European EV market will have in Renault’s and other companies future strategies. De Meo, however, has insisted that that he expects the market to remain “dominant” due to the decarbonisation regulations.

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