Groupe Renault suspends Ampere IPO plan to focus on cost reduction and strategic development of electric vehicles

Renault Group recently announced that it would suspend the IPO plan of its electric vehicle subsidiary Ampere due to the downturn in the stock market.

Groupe Renault emphasized that although it has not conducted an IPO, the group has sufficient cash flow to continue to support the development of Ampere. They plan to continue to inject capital into Ampere until the company reaches breakeven in 2025. This decision will not have any impact on Groupe Renault's overall financial planning and capital allocation strategy.

# According to the editor’s understanding, Groupe Renault has shown a pragmatic attitude towards this decision. Group insiders said: "We are currently focused on implementing strategies, improving performance, and creating value for all shareholders." At the same time, the Ampere team will continue to promote its electric vehicle and software development strategy and has planned a clear roadmap and goals. It is to reduce the cost of electric vehicles by 40% within one product cycle.

Groupe Renault has previously announced plans to advance the IPO process of Ampere in the first half of 2024. However, recent news has suggested that Groupe Renault may consider canceling its IPO if market valuations are too low. It is reported that Luca de Meo, CEO of Groupe Renault and Ampere, had predicted that the valuation of this IPO might reach 10 billion euros.

Last December, Renault partners Nissan and Mitsubishi announced they would invest in Ampere. Renault emphasized that the two companies still have an interest in Ampere even if it does not conduct an initial public offering (IPO). In addition, Qualcomm has also expressed its intention to invest in Ampere, but their investment decision is closely related to whether Ampere will IPO.

Thierry Piéton, Chief Financial Officer of Renault Group, mentioned that Renault planned to have further discussions with Nissan regarding the latter’s investment in Ampere when he mentioned the plan to cancel the Ampere IPO. He revealed: "Nissan has made it clear that they hope to obtain potential investment opportunities regardless of whether Ampere conducts an IPO. The two parties have made corresponding provisions in the contract and signed an agreement to allow Nissan to conduct IPOs whether Ampere All are eligible for investment in the event of an IPO.”

The above is the detailed content of Groupe Renault suspends Ampere IPO plan to focus on cost reduction and strategic development of electric vehicles. For more information, please follow other related articles on the PHP Chinese website!