Renault finally backtracks on the Ampere IPO. However, the manufacturer was banking on this operation which was supposed to give a decisive boost to the company – but obviously the market conditions are not yet met, without further details.
After this cancellation, Renault plans to continue supporting Ampere financially until the latter reaches balance by 2025. The manufacturer hopes to’ Moreover, its subsidiary will generate 25 billion euros in turnover by 2031 with an operating margin of at least 10% from 2030.
Like the rest of the industry, Renault is facing a difficult context
Renault assures that “this decision is not ;#8217;has no impact on the financial market of Renault Group and its capital allocation strategy…. And adds that it has raised its performance beyond expectations, giving it “more flexibility and freedom” to make this decision.
“In 2022, the Renault Group announced its intention to introduce Ampere on the stock market. The last calendar mentioned the first half of 2024, depending on market conditions. Groupe Renault considers that the current conditions of the equity capital market are not met to optimally pursue the IPO process in the best interest of Groupe Renault, its shareholders and Ampere’ ;#8221;, we can read in the press release.
Sources cited by Reuters claim that Renault is’ A low limit was set for the valuation of the subsidiary, between 6 and 7 billion euros. But during the spring introduction period, several factors risked working against Renault. Because the context is rather one of a slowdown in market growth for many manufacturers of electric cars on the old continent.
Added to this is increasingly strong competitive pressure from foreign brands, particularly Chinese ones. Several European firms in the sector including DKV Mobility, Renk and Planisware have also decided to cancel their IPO for similar reasons.
Despite this setback, Ampere maintains very ambitious objectives. The manufacturer hopes to sell 300,000 electric vehicles in 2025, compared to 45,000 in 2023. Ampere should launch a total of 7 models by 2031: the Mégane E-Tech, a new Twingo expected at less than 20,000 euros, the highly anticipated Renault R5 and Renault R4 as well as the electric Scenic.
- Renault announces in a press release its decision to cancel the IPO of Ampere, its subsidiary dedicated to electric cars.
- The manufacturer fears that the market is not currently favorable to a correct valuation of Ampere while the sector deplores a slowdown in sales among many players and increased competition from foreign brands, particularly Chinese.< /li>
- Beyond that, the manufacturer is preparing, through Ampère, the release of 7 new models by 2031 – including a new Twingo expected at a price below €20,000 – maintains an ambitious trajectory, ensures the parent company.
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