PARIS (Reuters) – Luca de Meo, general manager of Renault and president of the Association of European Automobile Manufacturers (Acea), sent a letter on Tuesday to European decision-makers in which he notably advocates reinforced cooperation on a continent-wide scale to counter Chinese competition in the electric sector.
“I believe in common efforts, in partnerships between the public and private sectors. With Airbus, Europe has already experienced the best. By increasing cooperation, our industry will take the road to renewal,” he wrote in the letter written in several languages in anticipation of the next European elections in June.
“The ecological transition is a team sport,” he adds. “European industrialists are often prisoners of the logic of short-term profit imposed by the financial markets while they must invest in the long term (…) The Chinese have solved the problem by mobilizing all forces, including financial institutions , towards a single objective.”
Europe’s auto industry, which believes China is now a generation ahead of battery technology, is bracing for a wave of cheaper Chinese models to arrive on the continent.
To deal with this, Luca de Meo recommends the launch of ten major European projects in strategic areas, such as small cars, smart charging or the supply of critical materials.
He also advocates the creation of green economic zones inspired by the special economic zones of China, concentrating subsidies and industrial investments thanks to reduced taxation and wage costs for ten years.
But while the European Union has opened an investigation to determine whether or not the Chinese automobile industry benefits from aid that distorts competition, Luca de Meo specifies: “(The) interest (of Europe) is also to learn from Chinese manufacturers (…) The relationship with China will have to be managed. Completely closing the door to them would be the worst response.”
Renault, whose transformation strategy involves a multiplication of partnerships beyond its historic alliance with Nissan, is still waiting for the green light from the Chinese authorities to finalize its joint venture with the Chinese Geely in thermal and hybrid engines.
(Reporting by Gilles Guillaume, edited by Kate Entringer)
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