Renault to close flagship project it planned to take to IPO - Reuters

Auto concern Renault plans to close Ampere Holding division, engaged in the development of electric vehicles and software, and its activities to be re-integrated into the main business of the group. This was reported to Reuters by sources close to the company. Renault thus wants to simplify the structure, reduce costs and accelerate the implementation of future projects, the agency writes. The return of Ampere to the structure of Renault was a consequence of the carmaker's refusal in early 2024 from the IPO of Ampere, according to interlocutors of Reuters. Ampere agency calls Renault's "flagship project" of the times of former CEO Luca de Meo.

Ampere has reported to Renault Group technical director Philippe Brunet since September 2025. It is now expected to become a center of excellence for electric vehicle engineering and software within the group, according to Reuters interlocutors. Ampere's plants in northern France, which produce electric car models such as the R5 and Scenic, will be reincorporated into the parent company. Reuters sources said company management presented Ampere's reorganization plan to unions on Jan. 21, with implementation scheduled to begin July 1. No layoffs or changes in working conditions are expected for most employees.

Ampere was created in late 2023 as a separate company focused exclusively on electric vehicles and software - it was the first such project in Europe. Renault's previous CEO Luca De Meo, who left office in 2025, planned to take Ampere to the stock exchange, but in early 2024 the company abandoned the Ampere IPO due to low market valuation, Bloomberg writes. Renault initially had high hopes for Ampere, with Luca De Meo expecting a valuation of up to €10 billion ($11.7 billion).

"The rejection of the IPO has provided an excuse to review [the company's] governance and operating model, simplifying processes and increasing Ampere's influence while maintaining its strengths," said one Reuters source. - Since there will be no more listings, it doesn't make sense to keep a separate structure. Renault is simplifying the model and eliminating the complexities inherent in it.

The automaker's shares rose 3.3% in Paris trading on Jan. 21.

The return of Ampere to Renault's structure will be the second major change in the company in less than two months after the automaker was headed by François Provost, who replaced Luca de Meo, Reuters writes. In December, Renault announced the closure of its Mobilize carsharing service. The resources of this division have also been returned to the main structure of the concern.

Renault is not the only European automaker that is adjusting its EV strategy amid instability in the industry, Bloomberg notes. In January, Stellantis abandoned its course for a full transition to electric vehicles and now bets on hybrid models. Volkswagen and Porsche also adjusted their electric car plans last September, given uneven demand and growing competition from Chinese brands offering cheaper cars in Europe.

This article was AI-translated and verified by a human editor