Renault Pulls the Plug on ‘Ampere’ Electric Car Project in Bold Strategic U-Turn – Breaking News
Paris, France – In a dramatic shift that signals a new era for the Renault Group, CEO François Provost has effectively dismantled a key pillar of his predecessor Luca de Meo’s ambitious turnaround plan. The company announced today it will dissolve Ampere, the dedicated electric and software division launched just last year, reintegrating its functions into the core Renault structure as of July 1st. This is breaking news for the automotive industry, and a significant development for the future of electric vehicle development in Europe.
From ‘Pure Player’ to Core Integration: What Happened to Ampere?
Ampere was envisioned as Renault’s spearhead in the race to become Europe’s leading electric vehicle manufacturer, complete with its own governance and even aspirations for an initial public offering (IPO) valued between €8 billion and €10 billion. However, the IPO was scrapped earlier this year, and now, the entire independent structure is being unwound. Renault is calling the move “Ampere 2.0,” framing it as a simplification effort designed to cut costs, reduce organizational complexity, and accelerate project execution amidst growing financial and competitive pressures. Sources within the company suggest that without the prospect of going public, maintaining a separate entity no longer made financial sense.
De Meo’s Legacy Under Scrutiny: A Shift in Priorities
This decision represents a significant departure from the “Renaulution” plan championed by Luca de Meo. Ampere was arguably his most personal project, a bold bet on a future dominated by electric vehicles and software-defined cars. Provost’s actions suggest a return to a more pragmatic, centralized approach, prioritizing operational discipline and profitability over ambitious, standalone ventures. It’s a clear signal that the new CEO is focused on streamlining the business and delivering tangible results in the short term. The move echoes a broader trend in the automotive industry, where the initial rush to establish independent EV divisions is being re-evaluated in light of economic realities.
What Does This Mean for Renault’s Electric Future?
While the Ampere structure is dissolving, Renault insists the capabilities developed within the division remain valuable. The company will retain two technical areas – Ampere Energy (focused on batteries, motors, and power electronics) and Ampere Software Technology – as 100% subsidiaries. The factories in northern France and the Cléon engine factory will revert to direct Renault control. This suggests Renault isn’t abandoning its electric ambitions, but rather consolidating its resources and expertise under a more unified command. This is a common strategy in large organizations – to leverage innovation within a more controlled environment.
Recasens’ Role: A Promotion Amidst the Shakeup
Interestingly, the dismantling of Ampere coincides with a promotion for its former head, Josep Maria Recasens. He’s been appointed Chief Strategy, Product & Program Management Officer, reporting directly to Provost and joining the group’s Leadership Team. This move, while seemingly paradoxical, suggests Renault values Recasens’ expertise and intends to leverage his knowledge within the restructured organization. Recasens also retains his position as president of Renault in Spain and the Spanish manufacturers’ association Anfac.
Beyond Ampere: The Fate of Mobilize and Horse
Ampere isn’t the only De Meo-era project facing restructuring. Renault previously announced the end of Mobilize Beyond Automotive, another initiative focused on mobility services. However, the company is maintaining the segregation of its combustion and hybrid propulsion systems business, Horse, due to the involvement of partners Geely and Aramco. This selective approach highlights Provost’s focus on consolidating areas where Renault has full control while preserving strategic partnerships.
Union Concerns and the Road Ahead
Renault has assured unions that the reorganization will be “socially neutral,” with no impact on employment or contracts. However, some union representatives express concerns about the elimination of the Ampere SAS subsidiary and the potential relocation of its nearly 2,000 employees to other group functions. The timing of this restructuring, just before the presentation of Renault’s new strategic plan in March, has also raised eyebrows. The automotive industry will be watching closely to see how Renault navigates this pivotal moment and what the future holds for its electric vehicle strategy. This is a developing story, and we’ll continue to provide updates as they become available. Stay tuned to archyde.com for the latest SEO-optimized Google News coverage.
