Renault Group To Create Dedicated Electric And Software Company, Ampere

(RTTNews) - Renault Group (RNSDY.PK, RNSDF.PK, RNT.L) has launched Revolution, the third chapter of its Renaulution plan, with the ambition to become a Next Gen automotive company. This follows Resurrection and Renovation, the first two phases of the Renaulution strategic plan presented in January 2021. The Group is operating its own Revolution by creating 5 focused businesses with specialized teams, each built on a homogeneous set of technologies, with their own governance and P&L. These businesses are: Ampere; Alpine; Mobilize; The Future Is NEUTRAL; and Power.

Ampere, a standalone company, will develop, manufacture, and sell full EV passenger cars, with software-defined vehicle technology, under the Renault brand. Based in France, Ampere will be a full-fledged OEM. Ampere plans to produce around 1 million EVs for the Renault brand in 2031. The envisaged IPO will be on Euronext Paris earliest second half of 2023 with Renault Group keeping strong majority.

Separately, Renault Group and Qualcomm Technologies, Inc. announced plan to enter a strategic long-term cooperation. Qualcomm Technologies, or one of its affiliates, will also be investing in Ampere.

Alpine is developing a brand-new line-up that will fuel international ambitions. It will be full-electric from 2026. The Group expects half of Alpine's growth to come from new markets beyond Europe including potentially North America and China.

Mobilize is planned to become a Vehicle-as-a-Service dedicated provider, combining financial, mobility, energy and data-based services supported by purpose-designed vehicles.

The Future Is NEUTRAL will be the first 360° circular economy company in the automotive industry from closed-loop in materials to battery recycling, the Group said.

The traditional core business of Renault Group will continue to develop low emissions ICE & hybrid vehicles under the Renault, Dacia and Renault LCV brands. Also, Renault Group and Geely will combine their ICE in a 50-50 entity, which will design, develop, produce, and sell all ICE & hybrid powertrain components and systems with state-of-the-art technologies. The framework agreement envisages Geely and Renault Group holding 50% stakes in new company. The new company will supply multiple brands worldwide with complete range of powertrains including electrified solutions.

The Group noted that Renault brand will remain present on ICE & hybrid markets, especially in Latin America, India, South Korea and North Africa.

Separately, Renault Group and Google announced an expanded partnership aimed at designing and delivering the digital architecture for the Software Defined Vehicle. The collaboration includes in-vehicle software to enable the Software Defined Vehicle Platform and cloud software to enable a Digital Twin. Also, Renault Group has appointed Google as its preferred cloud partner.

For 2025-2030, Renault Group targets: operating margin above 8% in 2025 and above 10% by 2030; and free cash-flow above 2 billion euros per year on average over 2023-2025 and above 3 billion euros per year on average over 2026-2030.

Renault Group plans to restore dividend payment from 2023. The Group noted that this dividend policy will gradually grow up to 35% payout ratio of Group consolidated net income - parent share, in the mid-term.