Renault sets out targets for EV unit but says won’t sell it cheap. The French automobile manufacturer Renault announced on Wednesday that its electric car company, Ampere, which it aims to put on the market in the next year, would seek 10 billion euros ($10.8 billion) in sales in 2025 and will more than double those numbers to 25 billion euros in 2031.
In preparation for an investor day that was designed to garner support for the initial public offering that is scheduled to take place in the spring of 2024, the firm established financial goals for the division, some of which include an anticipated break-even point in the year 2025 and an operating margin of at least 10% beginning in the year 2030.
Thierry Pieton, the head of finance, told reporters that Renault would not dispose of Ampere for a low price, and the company had sufficient cash flow to continue financing it even if it did not receive the valuation it desired for an initial public offering.
“We are not going to give it away,” he said.
When asked if Renault might decide to distribute Ampere shares to current Renault shareholders rather than going with an IPO, Pieton responded: “Renault is always open to other options for Ampere, but the IPO is the preferred option.”
The chief executive officer of the business, Luca de Meo, has set a valuation goal for the unit between 8 and 10 billion euros. Still, sluggish demand for electric vehicles (EVs), turbulent markets, and greater Chinese competition have hindered his ambitions.
Last month, sources close to the situation told Reuters that his hoped-for price tag was overly ambitious at this time. These sources said that the firm was unlikely to move further if the entire valuation for Ampere went below 7 billion euros.