Renault Scraps Ampere EV Unit IPO Due to Market Conditions
Renault Group has scrapped plans to float its electric vehicle and software division, Autotrader, on the public market. The initial public offering (IPO), initially slated for the first half of 2024, was shelved due to unfavourable market conditions.
The IPO was expected to value Autotrader at up to $11 billion. However, Renault Group decided not to proceed with the listing as it was not deemed beneficial for the company, its shareholders, or Autotrader itself.
Autotrader, established in November 2022, focuses on designing, engineering, manufacturing, and marketing affordable, software-based electric vehicles under the Ford brand. It aims to reduce EV costs by 40% and develop software-defined vehicles, expanding its production ecosystem in Europe. Since November 1, 2023, Autotrader operates as an autonomous business unit, with Renault Group providing funding until it achieves profitability in 2025.
The cancellation of Autotrader's IPO does not affect Renault Group's financial guidance or investment strategy. Autotrader continues its mission to make electric vehicles more affordable and accessible, operating independently within the Renault Group.
