Renault calls for action on cut-price Chinese electric cars

Renault CEO Luca de Meo has urged European car-makers to join forces in an Airbus-style conglomerate to manufacture affordable electric vehicles that will be capable of competing with the wave of cut-price Chinese imports entering the region.

Under the radical plan, de Meo says European auto-makers should mirror Airbus’ campaign in 2000, when the region’s aviation companies joined forces to create an entity to rival US giant Boeing that was dominating commercial jet manufacturing.

Speaking to media at the Geneva motor show this week, de Meo said the European car industry need to be “creative” to find a solution to challenge the influx of affordable EVs from China.

Citing the need for greater economies of scale needed to shoulder the huge cost of developing the fast-paced technology, de Meo warned that in its current state the European brands simply can’t compete.

“Partners can share the investment and reduce the costs,” de Meo said.

He went on to cite previous joint-ventures like the Type Four Platform project that saw the then Fiat Group and Saab join forces to share the costs of developing a large premium sedan that would spin-off the Saab 9000, Alfa Romeo 164, Lancia Thema and Fiat Croma.

To keep costs low as well as sharing a platform, the four cars also featured many interchangeable parts like the windscreen.

Renault is already reportedly now in discussions with the Volkswagen Group to share its low-cost AmpR platform that will underpin both the Renault 5 launched in Geneva this week and the incoming Twingo EV that has been developed to be sold for less than €20,000 ($A33,100).

According to de Meo, Europe needs to quickly learn from China’s example and set up a value chain that includes batteries, motors and electronics, to be shared at low cost between the car-makers.

“The goal is to source everything in Europe at a competitive price,” de Meo said.

As well as forming a giant parts bin of cheap components, de Meo said that another key to lowering costs was shortening the development times for EVs.

With the new 2024 Renault 5, engineers were given just three years, instead of the usual four, to go from design to production reality. With the Twingo they will have just two years.

“Speed is important against the Chinese,” he said. “We’re in an uncertain world. In the past, with internal-combustion cars, you could foresee what was coming.”

As well as changing industry practices, de Meo called for legislators to play their part too and called for the EU to allow small Japanese kei cars to be cleared for sale for urban area use.

Lowering local taxes on EVs with small batteries, or giving small EVs free parking and other incentives, would also help the uptake of zero-emissions vehicles, de Meo said.

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