Renault will assemble electric motors in France from Chinese components
Renault announced plans to establish the assembly of a compact electric motor in France using components from the Chinese company Shanghai e-drive. Production will be located at the plant in Cléon: a new production line with a capacity of 120,000 motors per year should start operating in 2027.
What's known
The goal of the project is to reduce costs and support profitability against the backdrop of a cooling electric vehicle market in the EU. The French company has already used Shanghai e-drive electric motors in the new Twingo. Previously, it also abandoned a joint project with Valeo to develop a more expensive engine without rare earth metals, opting for more affordable components from China.
At the same time, Renault does not plan to return to the Chinese market with car sales, citing fierce competition and price wars. Instead, the automaker intends to integrate more deeply into the Chinese supply chain while maintaining its own technological competencies.
Renault also continues its cooperation with Geely within the framework of the Horse Powertrain joint venture and follows the "local-for-global" strategy, reflecting the general trend among European car manufacturers to use Chinese technologies and suppliers to reduce the cost of electric vehicles.
Source: Automotive World
