Renault to reintegrate electric vehicle division Ampere

French automaker Renault Group is set to reintegrate its electric vehicle (EV) division Ampere back into the main company, reversing a 2023 spin-off strategy that failed to achieve its intended goals.

The move comes under new chief executive François Provost, who has been reviewing the strategic decisions made by his predecessor Luca de Meo. Ampere was established as an independent company in November 2023, employing around 11000 staff focused on electric cars and software-defined vehicles.

According to Reuters, citing two company insiders, the reintegration is expected to simplify operations, reduce costs, and accelerate future project implementation.

Spin-off strategy unravels

Ampere was originally conceived as a pet project of former CEO Luca de Meo, who brought alliance partners Nissan and Mitsubishi on board with plans for a rapid public listing. The division took control of Renault’s ElectriCity manufacturing cluster in northern France, including car factories in Douai and Maubeuge, plus component plants in Ruitz and Cléon.

The unit assumed production responsibility for electric models including the Renault 4 and Renault 5, while also establishing a new software centre near Nice. Around 35% of Ampere’s workforce were engineers.

However, the planned initial public offering (IPO) was postponed in January 2024 and has not been rescheduled. The strategy further unravelled when Nissan was released from its €600 million investment obligation in March 2025, followed by the termination of Mitsubishi’s €200 million investment agreement in May 2025.

New CEO reverses course

Since taking over from de Meo, who moved to luxury group Kering in summer 2025, Provost has systematically reviewed the company’s strategic direction. The Ampere reintegration marks the second major reversal of his predecessor’s decisions, following December’s halt to Mobilize’s car-sharing business.

“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,” one insider told Reuters.

Under the new structure, Ampere will operate as a pure development centre for the group’s electric vehicles and software, while the car and component plants will become direct subsidiaries of Renault Group.

The restructuring reflects broader challenges facing European automakers as they navigate the transition to electric mobility while managing operational complexity and investor expectations. For New Zealand’s automotive market, such corporate consolidations among major manufacturers can influence product availability and strategic focus in smaller markets.

The reintegration is expected to streamline decision-making processes and reduce the administrative burden of maintaining separate corporate structures, potentially allowing Renault to respond more quickly to market changes in the competitive EV sector.