Renault to fund EV arm Ampere until reaching break-even

Automaker Renault has canceled its plans to IPO its electric vehicle (EV) subsidiary Ampere. The company took this step after deteriorating stock market scenarios.

The weakening demand for domestic seller also faces challenges from Chinese competitors across Europe.

The potential IPO could set Amepre out of Renault’s combustion business portfolio and provide it with a separate identity. The parent company said that it has enough cash to keep the EV arm going without the IPO.

Last year, Luca De Meo, CEO of Renault Group predicted a potential IPO worth 10 billion euros. The latest statement from the European car maker promises to keep funding Ampere until it reaches break-even around next year.

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“Considering both current equity market conditions and stronger cash generation, Renault Group has decided to cancel the Ampere IPO process” notes a statement.

As previously, Renault was expecting this public listing by 2024 but also hinted that it won’t be involved in the market if the valuation is low.

Some car makers including Nissan, Mitsubishi, and chip maker Qualcomm also proposed to invest in Ampere. Due to the current doubts over IPO, the company is seeking other ways to get these companies along to grow Ampere.

(via – Reuters)