BEHIND THE HEADLINES
Beat them or join them? Two major players are trying different tactics.
If you think European car makers are being complacent about the growth of Chinese manufacturers, you should speak to Renault.
The French firm is remodelling its entire new-car development process in a bid to keep up with China. In China a car can go from idle dream to rolling off a production line in an alarmingly short time. And, crucially, it will arrive in the European market at a much lower cost than locally developed and built alternatives.
The current generation of Renault Clio and Captur each took five years to develop. While both fine products, that’s too long if you don’t want to be overtaken by the ever-growing number of Chinese car firms sprouting up like seeds in freshly watered soil; the water being generous Chinese government subsidies.
While Renault is tackling China headon through these changes – ‘a question of survival,’ says Sabine Calvo, vice president of vehicle validations and digital transformation –fellow European firm Stellantis is taking a different approach by working more closely with China.
The automotive giant – parent company of 14 brands, most of them European and US legacy car makers – announced a partnership with Chinese start-up Leapmotor last year and has now formed Leapmotor International, with Stellantis the majority shareholder.
It’s a surprising move given Stellantis CEO Carlos Tavares’ often-outspoken remarks about Chinese car firms. If you can’t beat them, join them, it seems.
IN CHINA A CAR CAN GO FROM IDLE DREAM TO PRODUCTION IN AN ALARMINGLY SHORT TIME
Through the partnership, Leapmotor aims to expand operations into various new regions, including select European countries from September 2024, but not the UK at first.
Stellantis says Leapmotor’s cars will be ‘complementary’ to its ‘portfolio of iconic brands’ and bring ‘more affordable mobility solutions to customers’.
If that means someone buys a Leapmotor in preference to another low-cost car, that’s a win for Stellantis. But if they buy a Leapmotor instead of a Peugeot? Not so much.
Renault’s aiming to beat Chinese car companies by learning from them, chiefly by drastically cutting its development time from five years to two. It’s all part of chief executive Luca de Meo’s ‘Renaulution’ master plan. The first car to be brought to market on this tight new timescale will be the next Renault Twingo.
Renault is adamant no corners will be cut, and puts this down to something it calls ROADS – Renault Operational Advanced Driving Simulator. It’s an entirely new building at Renault’s R&D Technocentre just outside Versailles, and involved investing €26m (£22.2m) in various simulator
