Companies

Renault to invest €128 m in Chinese e-vehicles venture with Jiangling

Bloomberg July 17 | Updated on July 17, 2019 Published on July 17, 2019

The deal is off After a few days of intense excitement, FCA and Renault will not be coming together thanks to ‘political conditions in France’   -  REUTERS

Renault SA will invest €128.5 million ($144 million) for a 50 per cent stake in a venture with Jiangling Motors Corp (JMC) to develop electric vehicles in China.

The entity was created in 2015 and already holds certification to manufacture battery-electric passenger cars, according to a statement from the French carmaker on Wednesday. It aims to grow quickly and become a prominent player in the Chinese market, it added.

“This partnership in electric vehicle business with JMC will support our growth plan in China and our EV capabilities,” Francois Provost, head of the China region at Renault, said in the statement.

Renault, which has had a limited presence in China, is pushing ahead with an electrification strategy that includes a new battery-powered car that will go on sale in that country along with a plan to make hybrid versions of three of its existing models.

Recent launch

Last year it unveiled the K-ZE, an electric SUV-like car that will be made in China and have a range of 250 km. It’s being manufactured through a separate joint venture between Dongfeng Motor Corp and Renault’s alliance partner Nissan Motor Co.

Renault also has plans to invest more than €1 billion to boost its production of electric cars in France — a move that was aimed at smoothing relations with the French government, its biggest shareholder. It’s among carmakers spending billions of dollars to shift to battery-powered vehicles from diesel engines as the industry responds to a tightening of European emissions rules.

In China, global automakers have been expanding tie-ups with local new-energy vehicle makers to meet the government’s regulations on fuel consumption that were put in place this year.

Published on July 17, 2019
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