Renault CEO urges collaboration with Chinese automakers

08.10.2024

Renault Group CEO Luca de Meo has played down the threat of Chinese brands entering Europe and potentially displacing established automakers. He suggests that a new collaborative approach could support the future of European car manufacturing. De Meo anticipates a shift in how European manufacturers, suppliers, and new brands interact in response to concerns about tariffs on Chinese cars.‟They might consider localizing production and integrating more deeply into the ecosystem—similar to what we were asked to do when we entered China 20 or 25 years ago,‟ de Meo said at the Paris Motor Show. ‟Perhaps the Chinese could assist through joint ventures, investing here instead of in China, to participate more directly.‟ He emphasized that Chinese brands are not the first to enter Europe, referring to the entry of Japanese, Korean, and earlier American brands. ‟The American, Japanese, and Korean brands make up about 25% of the European market, not 95%, and we're still here; last year, Renault had the best results in its history,‟ de Meo noted. ‟It won't be easy, but we're ready to react and compete.‟He further stressed the importance of collaborating with Chinese firms, particularly in battery technology. ‟To accelerate in the electric vehicle market, we need the support of Chinese companies with expertise in mining, chemical refining, and production,‟ de Meo remarked. ‟Most of Europe's gigafactories are built by Chinese companies due to their experience. I believe we need to find a way to collaborate.‟De Meo concluded that this is a time for productive discussions rather than missed opportunities. ‟They want access to Europe's prosperous market, which is naturally shifting to electric. In exchange, we could benefit from their support and expertise,‟ he said.