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Discover Ampère, Renault's new electric subsidiary
On Wednesday 15 November 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, particularly in batteries, engines 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, particularly in batteries, engines 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 solely on electric vehicles and software solutions linked to this mobility. It will bring together Renault's electric activities, in particular 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 go on sale in 2025 at a price of less than €20,000. This project is a strong signal of Renault's desire to offer affordable electric vehicles. If the car goes on sale at this price, it could have a significant impact on the electric vehicle 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 be offering electric versions of some of its flagship models, such as the Renault Mégane and the Renault Captur. The subsidiary aims to produce one million electric vehicles by 2031.
A wider 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:
- A electric city carto meet the needs of city-dwellers who want a compact, affordable electric vehicle.
Renault's next electric car, the TwingoThe new Twingo will be available at an affordable price of less than €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, which is due to go into production in 2026, are generating a great deal of enthusiasm.
Positioned just below the Dacia Spring Currently (and at the level of 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 given that, at this price, it should be equipped with small batteries, its battery has an energy capacity of 22 kWh, which could limit its use slightly. autonomy maximum.
- A electric saloonIt's the perfect solution for 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.
- Customised: Ampère's software solutions will be customisable, allowing drivers to adapt them to their needs and preferences.
- Secure: Ampère's software solutions will be designed with enhanced security, ensuring the protection of driver data and vehicle safety.
Here are a few examples of software solutions that d'Ampère plans to develop:
- A connectivity platform that will keep drivers connected to their vehicle and the outside world.
- An infotainment system that will offer advanced functionalities 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: everything you need to know about ampère's strategic plan
Source: Renaulution strategic plan
The aim of the Renaulution plan is to restore competitiveness by implementing the following actions:
- Improving the efficiency of functions and adopting strict cost discipline.
- Exploiting the Group's industrial advantages and electrical leadership in Europe.
- Capitalising on the Alliance's technological expertise to enhance its effectiveness.
- Expansion of data, mobility and energy services.
- Enhancing the value of more competitive and differentiated brands, geared to the needs of customers and markets, with a view to greater profitability.
The Renaulution plan has already produced tangible results: a more profitable, competitive and successful company, with shining brands and a new product range.
La resurrection phase has been concluded ahead of schedule, with the Group's profitability restored from 2022.
- >5% Group operating margin by 2022
- 3bn of operating free cash flow generated by the automotive sector by the end of 2022
- 8-9% R&D Capex / Sales since 2021
La renovation phase is on the increase, 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 optimise performance. At the same time, 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 optimum environmental footprint.
In 2023, the Group launched its transformation phase, the revolution phaseThis strategy is designed to meet the challenges of the fast-changing sector and to anticipate future needs, demonstrating the Group's determination to adopt a proactive approach in order to remain at the forefront of innovation and relevance in the global automotive market.
Ampère: an ambitious project
Creating an independent, listed subsidiary is a financially very bold decision. Ampère will have to convince investors of its potential before it is floated on the stock market in spring 2024.
To achieve this, the subsidiary will draw on its ambitious strategy, its experienced team and its portfolio of innovative products.
Ambition for growth: Ampère targets €10 billion 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 by 2025, and €25 billion 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 desire to become a major player in electric mobility on a global scale.
Ampère: a stock market flotation is being considered
Thierry Piéton, Chief Financial Officer of Renault Group, points out 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 to reward its shareholders.
Ampère, Renault's electric subsidiary, has completed its creation phase with the financial support of Renault Group. It is now entering a new phase of accelerated development, which could be financed by a stock market flotation.
What if Ampère is being floated on the stock market, and the capital raised will 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-cutting programme, in particular 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, totalling 800 million euros. Qualcomm Technologies is also considering investing 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 one 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 comprehensive 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.
