© Renault
Since the announcement of the cancellation of Ampere's IPO, Renault has been visibly under pressure. The manufacturer must indeed find at least 2 billion missing euros to realize its ambitions in the electric – while the budget of the manufacturer's electrical subsidiary is only provisioned for the first “18 months” of the company.
Enough to raise doubts about the company's financial structure. In detail, due to lack of marketing, Renault must find around 1.5 billion euros by 2025. To which must be added the 200 million euros expected from Qualcomm – and 800 million euros of investments from Nissan and Mitsubishi.
Ampere: difficulties on the horizon, despite the reassuring communication from Renault ?
The bulk of these massive investments was in fact linked to the IPO of the constructor – Renault must therefore urgently find alternatives, even if officially the communication is reassuring, highlighting 'historic' results. in its latest assessment.
As a result, the manufacturer is turning to its historic partner Nissan with two levers in its sights. The first is a 28% stake in the Japanese manufacturer placed in a trust as part of the rebalancing of the alliance.
Renault has already started to draw on this fund. In December 2023, the group sold 5% of Nissan for an amount of 764 million euros. However, the remaining 23% is still valued, to date, at around 3.5 billion euros. Immobilized funds which will be potentially vital to maintain Renault's objectives with Ampere.
The manufacturer is in fact aiming for financial balance from 2025 – or in barely a year. An extremely ambitious objective, which would be a milestone. Because until now, manufacturers specializing in electrics took years to reach the capacity to self-finance.
Especially since Renault is far from still being the leader in this area. In 2023 the manufacturer sold only 47,500 electric vehicles throughout Europe – i.e. half as much as Tesla… taking into account only the sales of the Model 3. Obviously, several models are expected on the market.
This is the case of the Renault Scénic E-Tech which is arriving in the coming weeks, the electric Renault R5 or the electric Renault 4. The whole question is whether the sales volumes will be sufficient to not turn the operation into a major setback for the presidency of Luca de Meo at the head of the diamond manufacturer.
- The cancellation of Ampere's IPO forces Renault to find new resources to finance its subsidiary dedicated to ;#8217;electric.
- In total, 2 billion euros must be found to finance Ampere under good conditions.
- Beyond that, observers perceive Ampere's ambitious goals with circumspection – Renault in fact thinks that Ampere will wait for balance in 2025, even though the manufacturer has sold less than 50,000 electric vehicles throughout Europe in 2023.
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