Proactive Investors - Renault’s plans to spin off its electric vehicle wing through an initial public offering are reportedly being tarnished as wider economic issues grip.
France-based Renault (EPA:RENA) laid out plans last year to spin off its electric vehicle wing, known as Ampere, midway through 2023, with these having been pushed back into 2024.
However, the carmaker is unlikely to press ahead with plans to list shares in Ampere if the firm’s final valuation ducks below €7 billion (£6.08 billion), sources cited by Reuters said.
Faltering demand, increased competition from Chinese manufacturers in Europe and market volatility have hit the plans, the four sources explained.
Renault had been targeting a valuation in the region of €8 billion and €10 billion for the electric vehicle wing, chief executive Luca de Meo said previously.
Growing uncertainty across the European electric vehicle sector, highlighted by scrapped listing plans by German gearbox supplier Renk and French firm Planisware, have cast doubt over whether Renault can now achieve such a valuation though.