Euro Automakers Unite! Renault Boss Calls For Airbus-like EV Alliance To Fight China

Renault’s CEO, Luca de Meo, has urged European automakers to unite and form an Airbus-style conglomerate to manufacture affordable electric vehicles capable of competing with Chinese imports entering the continent.

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Airbus came together in 2000 as a joint venture between European aerospace companies. It is supported by European governments, and the companies came together to compete against large American companies, like Boeing.

According to de Meo, European automakers need to do something similar to compete with the growing influx of affordable electric vehicles from China, which has emerged as a powerhouse in the segment. According to Autonews, the CEO said “we need to be creative to find a solution” at the Geneva Motor Show this week.

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“Partners can share the investment and reduce the costs” of producing new vehicles, De Meo argued. He also pointed to past examples when European automakers have cooperated, such as on the “Type 4” platform in the ’80s, which was shared by Alfa Romeo Fiat, Lancia, and Saab.

Renault is already in discussions with Volkswagen to share the AmpR platform that underpins the Renault 5 and will go under the smaller Twingo, an EV the automaker plans to start selling at €20,000 (around US$21,700 at current exchange rates).

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According to de Meo, the challenge of such a project would be creating a European value chain that includes batteries, motors, and electronics, like Chinese automakers have done. “The goal is to source everything in Europe at a competitive price,” de Meo said.

He further argued that creating cars quickly will be a major challenge for European automakers. He said that Renault has shortened development times for its EVs from four years to three years for the Renault 5, and will get it down to two years for the Twingo.

“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.”

In addition, de Meo argued that EU rules should allow for small Japanese “kei” cars in urban areas, lowering the value-added tax on small EVs with small batteries (rather the bonus, which is currently offered in France), or giving small vehicles free parking to incentivize their use.