Tag Archives: Renault

News

French government is proposing the merger of Renault and Stellantis

Renault and Stellantis are merging into a new Group that will have almost 20 brands under its roof. This Group should be created after the proposal of the French government, which is the majority owner of Renault but also owns shares in Stellantis.

Stellantis chairman John Elkann denied the merger plans, responding to media speculation about a tie-up with Renault, which he declined to comment on. On the other hand, the government has supported Renault CEO Luca de Mea’s strategy from the start to build a new electrical and software unit based in France called Ampere. However, the relationship between Renault and Ampere became volatile following the group’s 2022 exit from Russia, its second-largest market after France at the time.

The French and Italian media point out that both manufacturers have a common interest in the fight against competition, primarily against Chinese manufacturers. Although the French government is considering Renault’s merger with Stellantis, it continues to support the Renault Group’s strategy of remaining an independent carmaker with several industrial and technological partnerships.

In this situation, Renault would benefit the most, because Stellantis with its 14 brands is far more competitive with the big EV manufacturers, whose demand has been growing for years. Also, there is the option of establishing connections with Geely, Saudi Aramco, Google and Qualcomm.

Whether the management of Stellantis will accept the proposal of the French government remains to be seen.

Source: Reuters

News

CEO of Renault demands new industrial policy in Europe

While Chinese car manufacturers are trying to conquer the European market and threaten the domestic industry, which is currently in crisis, the EU is trying to find a solution to stop them. The proposal was made by Luca de Meo, CEO of Renault and President of the European Automobile Manufacturers’ Association (ACEA), who called for a new industrial policy in Europe.

In September 2023, European Commission President Ursula von der Leyen announced that the EU will launch an investigation into the privileged position of electric vehicles produced in China due to subsidies. Some member states of the European Union are trying to independently protect domestic manufacturers, such as France, which announced that it was canceling subsidies on new electric cars produced in China. The biggest threat to French and other European manufacturers is not only Chinese companies like BYD, but also the world’s largest electric car manufacturer, Tesla.

Luca de Meo stated that Europe is facing major challenges and that the alienation and disorientation of the European automotive industry will lead to a structural trade deficit for Europe. He also warns that the phase-out of internal combustion engines, which is planned for 2035, could mean a decrease in the competitiveness of the European car industry. According to him, ICEs have been a protective barrier for Europeans for years, and now with the development of electric cars and the increased need for batteries, that protection is disappearing because the Chinese control 75 percent of global battery production.

Also, he expressed concern about the increase in car prices in the last two decades (+50%), as well as the average age of cars, which has increased from seven to 12 years. These and other reasons could be fatal for the automotive industry in Europe, if an appropriate decision is not made in time to protect domestic manufacturers and the domestic market.

Source: Reuters

News

Renault is reducing the price of its EVs

Renault previously announced that it plans to launch seven new electric cars by the end of the decade, in an effort to return to the throne on the domestic market in the segment of electric vehicles. The compact hatchback Renault Megane E-Tech with a lower price thanks to a government subsidy could help them in this.

In an interview with Reuters, Renault sales director for France Ivan Segal said: “The main focus of the Renault brand in 2024 is to go back on the offensive in the electric vehicle segment, since we are currently second.”

The French carmaker is currently third in the domestic market with almost 18,000 electric Meganes sold last year, while other manufacturers have achieved much better results. Tesla has sold 25,000 Tesla Model 3s and more than 37,000 Model Ys, and is the leader in the French electric vehicle market. The second is the Chinese brand MG, which sold 20,000 units of the MG4 compact hatchback in its first year on the French market.

Renault’s response in the effort to regain the position of the largest car seller in France will be the electric SUV Scenic and the electric Renault 5, which is expected in the summer. Also, the reduction in the price of electric cars (subsidy) should contribute to this, making them more accessible to a larger number of customers compared to the main competitors (Tesla and MG). Now the price of the Megane E-Tech will be 34,000 euros, or 29,000 euros with the subsidy.

Megane E-Tech is based on the CMF-EV platform and is powered by an electric motor with 218 hp and 221 lb-ft of torque. It is equipped with a 60 kWh battery that enables a range of 280 miles (450 km).

Source: Reuters