The automotive sector is one of the most active and dynamic in the global economy. For some years now, two paradigms have taken hold: electrification and autonomous driving . For this reason, the various companies within the sector are adapting their future plans, as otherwise they face extinction. The latest to announce its steps is Renault , making its convictions clear.
The Renault Group was one of the first to commit to the electrification of its brands . To this end, it has invested heavily, especially in regions like China. And it is in this country that it will take the first step towards global change, having made a very important decision: to abandon the market for passenger cars with internal combustion engines and focus on electric vehicles. But there's more…
Renault to focus on EVs and strengthen partnership with Nissan
In this segment of the market, the French conglomerate worked jointly with Dongfeng. To this end, it established a joint venture called Dongfeng Renault Automotive Company Ltd (DRAC). Now, following this announcement, the shares held by the French company will be transferred to Dongfeng Motor Corporation (DRAC). Once the transaction is complete, operations will cease, and the two entities will be separated.
However, the collaboration between the two manufacturers will not end completely. In fact, Renault and Dongfeng, along with Nissan, will continue working together , developing diesel and gasoline engines to meet the needs of markets where demand remains. Furthermore, they will not neglect autonomous driving and vehicle-to-vehicle communication , developing new technologies.
On the other hand, Renault's light commercial vehicle (LCV) division will continue operating through another company. Specifically, it will continue operating under the subsidiary Renault Brilliance Jinbei Automotive Co., Ltd. (RBJAC), which has been in business for years and will not be dissolved. At the moment, it is unclear how its operations will evolve, as Renault's commercial vehicles are also expected to transition to electric power.
Where there will be changes is in the electric vehicle business. It will be managed through two existing companies: eGT New Energy Automotive Co., Ltd (eGT) and Jiangxi Jiangling Group Electric Vehicle Co. Ltd (JMEV) . Nissan and Dongfeng are partners in the former, focusing on the production of the Renault K-ZE and Dacia Spring. The latter is a joint venture between the French automaker and Nissan, with plans to launch four electric vehicles by 2022.
Source – Groupe Renault
