Renault is already pushing for Europe to copy the Chinese model

The statements have been as concise as they are clear:

“You cannot come to Europe and build four plates with wheels and seats with little added value. What we have to do is commit them to teach us, to come with products with added value. We did not do it like that when we went to China, they should not do it when they come to Europe”

The words are from Josep Maria Recasens, president of Renault Spain, and reflect in three sentences the situation that the industry is experiencing in Europe, its internal debates and its fears.

Added value. This is what Recasens has demanded at the 1st Automotive Forum, organized by the Automotive Press Group to which it belongs. The Automotive Tribune. The president of Renault Spain, who is also the president of ANFAC (the manufacturers’ association in our country) has demanded that Europe force Chinese brands to associate with European ones so that they “teach us” how they make their products.

In Recasens’ opinion, Europe is opening the door to Chinese brands, allowing them to build “four plates with wheels and seats with little added value.” It is a veiled statement that points to the Chinese factories that are settling in our country but that, however, plan to produce vehicles based on kits that already come pre-assembled from China.

What do they teach us? When the president of Renault asks that the European Union force Chinese manufacturers “to teach us” it is for two reasons. The first is that China forced foreign manufacturers to partner with their local firms to produce on its soil.

What did they earn? Obviously, knowledge. Just take a look at the MG4 Electric to understand the extent to which its partnership with Volkswagen has borne fruit. At the same time, foreign manufacturers could produce at a much lower price and had access to the largest market in the world. What, we assume, they did not imagine is that China was going to surpass the West.

Yes, let them teach us. The second point referred to in “let them teach us” is evident: the president of Renault and Anfac recognizes that, at least in part, China is ahead. And the French company itself has gone to Shanghai to develop your Renault Twingoa car whose heart has been created internally in China in record time for the European industry.

But there have also been curious situations such as Mazda has brought the Mazda 6e to Europea car developed by Changan in China that, given its success, they have decided to test on European soil with a groundbreaking price per size.

And the warnings don’t end there. The industry has entered a fever to shorten deadlines and approaching the times of Chinese development. The consultants warn that, at the level of quality, there is no difference with the Europeans. Others warn Japanese firms that their extreme attention to detail and conservative evolutions they may have left them behind.

In question. Recasens’ words also emphasize the misgivings that have arisen among European manufacturers seeing how Chinese companies are arriving on our soil.

With the intention of stopping the arrival of Chinese electric cars at knockdown prices, Europe applied variable tariffs to each brand depending on the supposed help they have received from the Chinese Government in the form of soft loans or the transfer of land. The promise is that they would not pay if they manufactured in Europe.

But the first factories are also in question. Chery opted for assemble car kits in Barcelona. That is, cars that arrive almost assembled from the other side of the world and to which the final touches are given in the Spanish city. Now, the European Union is studying whether or not the electric Omoda 5 has to pay tariffs by understanding that added value is not being created around the production of said car.

But not only Chery. The Chery case was the first but it has not been the only one. Stéphane Séjourné, vice president for Prosperity and Industrial Strategy of the European Commission, has assured the Italian newspaper La Stampa that the institution also has the factory in its sights BYD in Hungary or the plans that CATL has in Europe (including those that has in Spain with Stellantis).

According to Séjourné, “it is not right” that these companies are manufacturing their cars in Europe with Chinese components and Chinese employees, noting that their investment in creating a local network of suppliers is minimal. A good example is the CATL battery production plant in Aragón where it is expected that employ 2,000 Chinese employees.

Photo | ANFAC and Renault

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