Renault Scraps Ampere EV IPO, to Fund Unit Until Profitability in 2025
Renault Group has scrapped plans to float its electric vehicle (EV) unit, Ampere, on the stock market. The decision comes as the company sees improved cash generation and favorable market conditions. Renault Group will now fund Ampere's development until it reaches profitability in 2025.
Ampere, which operates as an autonomous business since November 1, 2023, aims to accelerate EV adoption in Europe. Renault Group, which made Ampere its sole European EV and software pure player, initially planned an IPO in the first half of 2024. However, the current equity market conditions led to a change in strategy.
The cancellation of the IPO will not affect Renault Group's financial guidance or capital allocation plans. Renault Group's strategic plan, Renaulution, has shown strong cash flow generation in 2023, allowing it to self-fund its operations. Ampere's key focus areas include reducing EV costs by 40% in one generation, technological differentiation, upcoming vehicle launches, and creating a compact and efficient industrial EV ecosystem in Europe.
Renault Group has decided to fund Ampere's development until it reaches breakeven in 2025, scrapping the initial IPO plans. The company remains committed to accelerating EV adoption in Europe and will continue to support Ampere's operations through its strong cash flow generation.
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