No need to block Chinese brands in Europe, definitive industrial strategy needed – Renault Group CEO

No need to block Chinese brands in Europe, definitive industrial strategy needed – Renault Group CEO

There is no reason to hinder the progress of Chinese carmakers in Europe, however there is a need for a definitive industrial strategy to allow established automakers on the continent to compete with them, Renault Group CEO Luca de Meo said at the Munich motor show, Autocar reported.

“The only thing we can do is to accept that, to actually look at them and be humble, but not playing the victim,” de Meo told the magazine. The CEO rejected suggestions that Europe should adopt policies such as the Inflation Reduction Act (IRA) used in the United States, saying that the rapid growth of new players in a market doesn’t necessarily mean that they would dominate the market, the report wrote.

“When the Japanese and the Koreans came to Europe, it was the same thing. They can play the game,” de Meo said, adding that the total of all non-European brands in Europe make up 25%, and not the vast majority.

“We also have to recognise that globally we’re in the kind of race that’s a form of asymmetrical competition. America is playing the protectionist game with IRA and we’re facing on the other side a Chinese ecosystem that’s supported heavily by authority, by clear industrial policy, including subsidies on manufacturing, giving money for investment,” de Meo said.

No need to block Chinese brands in Europe, definitive industrial strategy needed – Renault Group CEO

Chinese automaker BYD plans to open two EV production plants in Europe, according to a report late last year. This will enable BYD to not just meet growing demand for its products, but to also bypass tariffs imposed by the European Union upon products from China, according to the Bloomberg report at the time.

“The thing that isn’t in the habits or the rules of the European community [is manufacturing support]. We tend to finance innovation projects but not manufacturing, so you get the money to develop a platform but not to put the platform on the line,” he continued, adding that the current system of subsidies in the region only supports research and development, but not manufacturing development.

The ACEA (European Automobile Manufacturers’ Association) is set to publish a study in the coming weeks, wrote Autocar, and the study is conducted by an independent body and which compares the structures and impact of the systems in the US, China and in Europe. While it is difficult to compare them, the study will be useful, said de Meo.

European manufacturers “want to be listened to” by the European Commission, the Renault Group CEO said, and suggested that imposing carbon-reducing regulations upon carmakers are not a suitable substitute for structured support.

The CEO said that car companies in Europe must demonstrate that they can achieve the collective decarbonisation goals in their own way, suggesting that simply mandating the end of sales of combustion-engined vehicles does not make a comprehensive decarbonisation strategy, Autocar wrote.

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Mick Chan

Open roads and closed circuits hold great allure for Mick Chan. Driving heaven to him is exercising a playful chassis on twisty paths; prizes ergonomics and involvement over gadgetry. Spent three years at a motoring newspaper and short stint with a magazine prior to joining this website.

 

Comments

  • Peppa on Sep 05, 2023 at 7:07 pm

    Coming from the CEO who sells his own company engine division to geli and urge Nissan to do the same thing, i am not suprised at all lmao. Just gulung tikar la Renault. You are not relevant anymore

    Like or Dislike: Thumb up 24 Thumb down 11
    • Tong San on Sep 05, 2023 at 10:11 pm

      Still got people here ask go back Tongsan. These people never been to Tongsan before.

      Like or Dislike: Thumb up 37 Thumb down 21
      • Peppa on Sep 06, 2023 at 10:00 am

        Why should i? I am not an ounce interested to know their culture anyway. Dumb ccp

        Like or Dislike: Thumb up 26 Thumb down 46
        • MASAMI on Sep 06, 2023 at 10:34 am

          @Peppa, you will never be able to understand their culture even if you wanted to. Google global IQ rank bro. Your intelligence level is too far behind. Impossible for you to really understand any east asian cultures bro. Not your level

          Like or Dislike: Thumb up 44 Thumb down 25
          • Peppa on Sep 10, 2023 at 9:46 am

            Japan and Korea are my favs. China taiwan? Not so much lmao. You are right. As a Malaysian myself, i am far outclass mainland chinese in term of cleanliness and attitude.

            Like or Dislike: Thumb up 0 Thumb down 10
      • Sapi Kaki Pendek on Sep 06, 2023 at 10:54 am

        AMDK CECA forever climax while provoking chinese KeK

        Like or Dislike: Thumb up 4 Thumb down 2
    • Emergency Vehicles on Sep 06, 2023 at 9:10 am

      Before we start dissing Renault, just watch this..

      https://www.youtube.com/watch?v=fpgv1iN9HR8

      They built race winning F1 car, driven by Fernando Alonso to win F1 Championship in 2005 & 2006.

      To ask them to gulung tikar is like not recognising their engine design capability.

      Like or Dislike: Thumb up 4 Thumb down 3
      • Saya ulammm... on Sep 12, 2023 at 5:45 pm

        Yes, we appreciate that.

        But… but… but that one so yesterday brother…

        Like or Dislike: Thumb up 0 Thumb down 0
  • Bei Yan Diu on Sep 05, 2023 at 7:29 pm

    Mommyyyy….mat salleh bully me…

    Like or Dislike: Thumb up 2 Thumb down 3
  • seancorr on Sep 05, 2023 at 8:01 pm

    Of course you can’t block them from entering your market, just as they allowed you to enter their market decades ago.

    Like or Dislike: Thumb up 17 Thumb down 1
  • ROTI CANAI on Sep 05, 2023 at 9:19 pm

    these europeans more worried they kena block in china actually

    Like or Dislike: Thumb up 14 Thumb down 3
  • Kill In Action KN KIA on Sep 05, 2023 at 11:29 pm

    EU has fair trade and anti-monopoly law, cannot simply block people do legit business

    Like or Dislike: Thumb up 12 Thumb down 0
  • Western Star on Sep 06, 2023 at 12:07 am

    Yeah tell that to our USA puppet PM and his China-hating Kominis komarads

    Like or Dislike: Thumb up 10 Thumb down 37
    • RAKYAT on Sep 06, 2023 at 9:02 am

      Betul bro. Semua yang sokong puak barat (pembunuh umat islam di palestine dll) dan benci china adalah mangsa media barat yang tujuannya menyokong misi setan yang maha besar. Our anti-china and pro west politicians are Yahudi followers

      Like or Dislike: Thumb up 58 Thumb down 42
      • Hooha on Sep 06, 2023 at 12:02 pm

        Well that escalated quickly.

        Like or Dislike: Thumb up 10 Thumb down 1
      • Jauhi diri anda dari najis dadah on Sep 06, 2023 at 1:04 pm

        You boys are obviously high on illegal narcotics substances

        Like or Dislike: Thumb up 16 Thumb down 2
        • Kantoi But Still Wanna Defend on Sep 06, 2023 at 2:48 pm

          Illegal narcos comes from? The West. So ini semue salah Barat.

          Like or Dislike: Thumb up 42 Thumb down 28
          • You're still dumb enough to name yourself Kantoi on Sep 06, 2023 at 8:26 pm

            The global illegal drug trade originates mainly from Asia (Golden Triangle & Golden Crescent) & Latin America (Colombia, Peru & Bolivia), smuggled into the West, not from the West.

            Like or Dislike: Thumb up 23 Thumb down 40
  • ThePolygon on Sep 06, 2023 at 8:32 am

    Well at least it’s fair competition then no?

    Like or Dislike: Thumb up 7 Thumb down 0
  • President Xi on Sep 06, 2023 at 11:54 am

    China numba one

    Like or Dislike: Thumb up 16 Thumb down 1
 

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