Discover Ampère, Renault's new electric subsidiary
On Wednesday November 15, 2023, Renault made official the creation of its new electric vehicle subsidiary, Ampère. This entity, which will be listed on the stock exchange in the first half of 2024, aims to accelerate the French group's electric transformation.
Ampère will bring together Renault's expertise in electrification, notably in batteries, motors and software. Its mission will be to develop a complete range of electric vehicles, from city cars to SUVs, at affordable prices.
A new stage in the Renault group's electric strategy
The project had been under discussion since November 2022. One year later, Ampère was officially founded. The creation of Ampère is another important step in the Renault group's electric strategy. This dedicated electric vehicle subsidiary will enable the French group to focus on this fast-growing segment and accelerate its transformation.
Ampère will bring together Renault's expertise in electrification, notably in batteries, motors and software. Its mission will be to develop a complete range of electric vehicles, from city cars to SUVs, at affordable prices.
Ampère, an electrical pure player
Ampère will be an electric "pure player", i.e. it will focus exclusively on electric vehicles and the software solutions associated with this mobility. It will bring together Renault's electric activities, notably the Mobilize brand, Renault and Nissan electric vehicles, as well as software and services activities.
The subsidiary also announced its first project, called "Legend", a compact and efficient electric car. It will be marketed in 2025 at a price of less than 20,000 euros. This project is a strong signal of Renault's determination to offer affordable electric vehicles. If the car is indeed marketed at this price, it could have a significant impact on the electric car market.
The creation of Ampère is an important strategic decision for Renault. It will enable the French group to position itself as a world leader in electric mobility. This is an important step in Renault's electric strategy, and the French group aims to become a world leader in electric mobility by 2030.
Ampère, a subsidiary dedicated to electric vehicles and software solutions
Ampère will also offer electric versions of some of its flagship models, such as the Renault Megane and the Renault Captur. The subsidiary aims to produce one million electric vehicles by 2031.
An expanded range of electric vehicles
Ampère plans to launch an expanded range of electric vehicles to meet the needs of all types of customers. The subsidiary will offer electric vehicles in all market segments, from city cars to SUVs.
Here are some of the electric vehicles planned by Ampère:
- An electric city carThis is the ideal solution for city-dwellers who want a compact, affordable electric vehicle.
Renault's next electric car, the Twingowill be available at an affordable price of under €20,000, reviving the original concept of the micro-city car. There's no denying that the technical promises surrounding the future fourth-generation Twingo, expected in its production version by 2026, are generating a great deal of enthusiasm.
Positioned just below the Dacia Spring (and at the same level as the future entry-level variant of the Citroën ë-C3), this car promises a combined fuel consumption of around 10 kWh/100 km, which seems surprisingly low.
This is good news, especially considering that at this price, it should be equipped with small batteries. Its battery has an energy capacity of 22 kWh, which could slightly limit its maximum range.
- An electric sedanThis electric sedan meets the needs of professionals and families who want a spacious, comfortable electric vehicle.
A electric SUV, for drivers who want a versatile electric vehicle that can venture off the beaten track.
Ampère: a focus on software solutions
Ampère will also focus on developing innovative software solutions to enhance the experience of electric vehicle drivers.
The subsidiary aims to develop software solutions that are :
- Integrated: the software developed by Ampère will be integrated into the vehicle, offering drivers a harmonious, seamless experience.
- Customized: Ampère's software solutions will be customizable, enabling drivers to adapt them to their needs and preferences.
- Secure: Ampère's software solutions will be designed with enhanced security in mind, ensuring the protection of driver data and vehicle safety.
Here are a few examples of the software solutions d'Ampère plans to develop:
- A connectivity platform that will keep drivers connected to their vehicle and the outside world.
- An infotainment system offering advanced features such as advanced navigation, voice control and entertainment.
- A driving assistance system that will help drivers to drive more safely and efficiently.
Ampère's software solutions will therefore play an important role in differentiating the subsidiary in the electric mobility market. They will enable Ampère to offer a more complete and enjoyable driving experience to its customers.
Renaulution: all you need to know about ampère's strategic plan
Source: Plan startégique Renaulution
The Renaulution plan aims to restore competitiveness by implementing the following actions:
- Improved functional efficiency and strict cost discipline.
- Leverage the Group's industrial advantages and electrical leadership in Europe.
- Capitalize on the Alliance's technological expertise to boost efficiency.
- Expanding data, mobility and energy services.
- Enhance the value of more competitive and differentiated brands, geared to customer and market needs, with a view to increased profitability.
The Renaulution plan has already produced tangible results: a more profitable, competitive and successful company, with shining brands and a new product range.
The resurrection phase has been completed ahead of schedule, with the Group returning to profitability as early as 2022.
- >5% Group operating margin by 2022
- 3Bn automotive free-cash-flow generated by end 2022
- 8-9% R&D Capex / Sales since 2021
The renovation phase is progressing, with safety measures in place.
Mobilize: the initiative to meet the challenges of mobility
The Group's recent brand restructuring is bearing fruit. Renault, Dacia and Alpine have been transformed into independent business units, with the addition of Mobilize to meet the challenges of mobility.
This first phase aims to align the Group with consumer expectations and optimize performance. Simultaneously, an ambitious series of 25 new launches between 2022 and 2025 is planned, aimed at introducing the best product range of the last three decades, while remaining focused on profitability and an optimal environmental footprint.
In 2023, the Group launched its transformation phase, the revolution phaseThis strategy is designed to meet the challenges of a rapidly changing industry and anticipate future needs, demonstrating the Group's determination to adopt a proactive approach to remain at the forefront of innovation and relevance in the global automotive market.
Ampère: an ambitious project
The creation of an autonomous, listed subsidiary is a financially very bold decision. Ampère will have to convince investors of its potential before going public in spring 2024.
To achieve this, the subsidiary will draw on its ambitious strategy, experienced team and innovative product portfolio.
Ambition for growth: Ampère targets 10 billion euros in 2025 and 25 billion in 2031
Ampère, a Renault subsidiary, recently announced its growth ambitions, setting ambitious targets for the coming years. The company aims to achieve sales of 10 billion euros by 2025, and 25 billion euros by 2031.
This growth strategy is part of the transition to electric mobility, a rapidly expanding sector. Ampère plans to strengthen its presence on the global market by offering a wide range of electric vehicles and developing innovative solutions to meet its customers' needs.
This ambition for growth reflects Ampère's determination to become a major player in electric mobility on a global scale.
Ampère: a planned IPO
Thierry Piéton, Chief Financial Officer of Renault Group, emphasizes that the future IPO planned for the first half of 2024 will accelerate Ampère's growth without impacting Renault Group's resources. This initiative will help accelerate Renault Group's roadmap for rewarding its shareholders.
Ampère, Renault's electric subsidiary, has completed its start-up phase with the financial support of Renault Group. It is now entering a new phase of accelerated development, which could be financed by an IPO.
And if Ampère is floated on the stock market, the capital raised would enable it to finance its investments, research and development, and acquisitions in the following key areas:
- Strengthening Ampère's software value chain.
- Acceleration of the cost reduction program, notably through the design and development of the Ampère second-generation Segment C platform.
- The development of new vehicles.
Ampère has already secured significant financial backing from its first strategic investors, Nissan and Mitsubishi Motors, for a total of 800 million euros. Qualcomm Technologies is also planning to invest in the company.
Conclusion
In conclusion, Ampère, Renault's new electric subsidiary, represents a major step forward in the brand's strategy to dominate the electric mobility sector.
With ambitions to sell more than a million vehicles by 2030 and an IPO planned for 2024, Ampère is positioning itself as a key player.
Its commitment to innovative software solutions, affordable models and a full range of electric vehicles reinforces its status as an electric "pure player".
Are you ready to switch to electric mobility? Don't hesitate to contact our Beev experts with any questions you may have. We promise to get back to you within the hour.
