Renault split in two and became Ampère

It was just a rumor, but it was confirmed this morning. The French manufacturer Renault will be divided into two well-separated parts, which will not have the same work axes, nor the same partners. An approach similar to what we’ve seen recently with Ford, to allow electric products to have more freedom and above all, to be seen in financial markets like this. So Renault decided to create two sub-entities: Ampère, referred to as “First pure electrical and software player born from the disruption of a traditional car manufacturer“, and Power,”The traditional core business of the Renault Group will continue to develop innovative low-emission thermal and hybrid vehicles under the Renault, Dacia and Renault LCV (light commercial vehicle) brands.“.

Ampere in the stock market

The future Renault Scénic will be produced by Ampère©Renault

Therefore, the idea behind the split into two parts is to allow electric Renaults to appear in the financial markets. We have already explained it to you in L’Automobile Magazine, investors are more sensitive to “environmental” issues and technologies. This explains the strong performance of Tesla, Rivian and other 100% electric brands in the stock market. Therefore, Renault will introduce the Ampère in Paris next year,”on Euronext Paris expected at the earliest in the second half of 2023 (subject to market conditions) where the Renault Group maintains a strong majority and the support of potential strategic investors (including Qualcomm Technologies, Inc.)“.

On the other hand, there is no word in the press release on the Alliance, the role of Nissan in this matter and the situation of Mitsubishi. The only mention of partners and a “capital participation in the study” in Ampère. But behind the scenes, it is said that Nissan should still take its share of this new company to rebalance the Alliance, where Diamond’s weight has always bothered Nissan.. For his part, Luca De Meo believes in this rebalancing, even if his plans must also work without the Japanese partner.

Very specific missions

For Power, the goal is to maintain the availability of thermal and hybrid engines with “accessible mobility” until 2030 in Europe and further afield in the rest of the world, while reducing CO2 emissions by 70% for vehicles placed in market. The accessible segment will clearly be handled by Dacia which, in addition to the Bigster, will launch two new, as yet unknown, models. Above all, Renault is talking about developing alternative fuel engines… and man-made ones. The French group is therefore betting on a possible renewal of combustion engines in Europe with this type of fuel.

To keep the thermal blocks afloat, Renault found an ally of choice: the work of “Power” will be carried out by a new joint venture equally owned by Renault and Geely, which continues to gain momentum in Europe. . Note that the Chinese group, which already owns Volvo and Lotus, also signed agreements with Mercedes for the Smart division.

At Ampère, engineers will focus solely on electrical. And therefore above all in Renault, with 6 electric models in 2030: Scénic, R5, Renault 4, Mégane, and two other models yet to be discovered, perhaps in higher segments where the Renault. Ampère is a name without any Anglicism, and for good reason: the entity is entirely based in France, with activities remarkably concentrated in the ElectriCity pole in the North of the country..

Finally, let’s not forget the software part “SDV” (Software Defined Vehicle, as Renault calls it): the SVD is co-developed with the two main partners Qualcomm for the hardware part and especially Google for software. Therefore, the American giant has confirmed its presence inside Losange, while it is already developing on-board systems for Mégane and Austral. Renault spoke open source access for developers so they can build applications for users and customers!

And the utilities?

Renault wants to pull out all the stops to be the leader in hydrogen utility vehicles from 2030 in Europe
Renault wants to pull out all the stops to be the leader in hydrogen utility vehicles from 2030 in Europe© Hyvia

Another important part: the equipment, with the arrival, also here, of two new sub-entities : Hyvia and FlexEVan. The first, you know it because it already has and makes fuel cell LCVs. The second is new and will be useful for companies: “The FlexEVan will be compact for city use thanks to a specially designed electric platform. The FlexEVan will benefit from the SDV built within the Ampere. The vehicle will be a fully connected extension of the warehouse, integrated into the customer’s digital ecosystem. It will be the first vehicle to benefit from the use of Renault Group’s Software-Defined Vehicle technology, in particular enabling real-time end-to-end monitoring of operations and data-driven fleet management. The FlexEVan will reduce the total lifetime cost of ownership for customers by at least 30%, more than the price of the vehicle” Therefore, we have to expect new light professional machines adapted to urban use. We will know more in the coming months.

Some numbers…

  • Renault aims for 1 million electric sales per year from 2031
  • Group operating margin: more than 8% in 2025 and more than 10% in 2030
  • Dacia, currently at 10% margin, aims for 15% by 2030
  • Dacia aims for 85% of sales to individuals
  • The circular/battery recycling component, “The Future is neutral”, currently covers around 50% of the value chain and aims for more than 90% by 2030

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