(Refiles to remove editorial notes from top of the story. No changes to text.) By Gilles Guillaume Jan 21 (Reuters) - Renault plans to shut down its electric vehicle and software unit Ampere Holding,
Renault to Close Ampere Unit, Simplifying Operations Under New CEO
Renault's Strategic Shift in Electric Vehicle Operations
(Refiles to remove editorial notes from top of the story. No changes to text.)
Background on Ampere and Leadership Changes
By Gilles Guillaume
Impact of Reorganization on Employees
Jan 21 (Reuters) - Renault plans to shut down its electric vehicle and software unit Ampere Holding, reintegrating its activities into the group to simplify the organisation, reduce costs and speed up implementation of future projects, two sources close to the matter told Reuters on Wednesday.
Future of Renault's Electric Vehicle Strategy
This would mark the second time in less than two months that Renault's new CEO François Provost reverses a major initiative taken by his predecessor, Luca de Meo, who joined luxury group Kering last year.
In December, Renault announced that it would shut down the car-sharing services of its subsidiary Mobilize, whose energy and data-related activities would be reintegrated into the group.
Renault launched Ampere at the end of 2023 to create the first European pure-play dedicated to electric vehicles and software. De Meo had wanted to introduce this entity on the stock market, but the process was abandoned in early 2024 due to insufficient market valuation.
The cancellation of the IPO provides an opportunity to review governance and operations, simplifying and amplifying Ampere's impact. All while retaining the elements that made it successful.
"As there is no longer an IPO, there is no longer a need for a specific entity, which is why Renault is reintegrating everything in order to simplify and eliminate the complexity inherent in the initial model," said one of the sources.
Ampere had already come under the leadership of Renault Group's chief technology officer, Philippe Brunet, in September.
It is now expected to become the group's advanced engineering centre for electric vehicles and software, while its factories in the Electricity division in northern France and its engine plant would revert to being direct subsidiaries of the carmaker.
According to the two sources, this reorganisation plan, presented to trade unions on Wednesday, is due to come into effect on July 1, with no impact on the employment or contracts of most employees concerned.
(Reporting by Gilles Guillaume, Writing by Mathias de Rozario, Editing by Milla Nissi-Prussak)
