Core Viewpoint - Renault Group is collaborating with Chinese private equity firms to establish an investment fund focused on the electric vehicle sector, marking a significant step in the partnership between state-owned LPs and foreign capital [5][7][17]. Group 1: Renault's Strategic Moves - Renault's CEO Luca de Meo visited China in early November 2023, meeting with Dongfeng Group and Geely, indicating a strong interest in the Chinese market [4][5]. - The newly announced investment fund will target areas such as batteries, intelligent driving, and software, aligning with Renault's strategy to leverage China's innovation capabilities [7][10]. - Renault's "Renaulution" strategy aims to revitalize the company by focusing on profitability, product innovation, and transforming its business model towards technology and mobility solutions [9][10]. Group 2: Historical Context and Performance - In 2020, Renault reported its worst financial performance, with global sales dropping by 21.3% and a net loss of €8.05 billion, prompting a strategic overhaul [8]. - Under Luca de Meo's leadership, Renault has seen a turnaround, with a projected 1.3% increase in sales to 2.26 million units in 2024 and a significant rise in electric vehicle sales by 87.9% year-on-year [13]. Group 3: Investment Fund and Collaborations - The new fund is a continuation of Renault's previous investment initiatives, such as the Alliance Ventures fund established in 2018, which aimed to invest $1 billion over five years [15][16]. - The collaboration with Hangzhou's state-owned capital is strategic, focusing on technological innovation rather than production capacity, as evidenced by Hangzhou's strong tech ecosystem [17][18]. - The partnership reflects a growing trend of local state-owned LPs collaborating with foreign capital, with Hangzhou's previous successful ventures in the automotive sector serving as a model [18].

Group 1 - Renault Group's CEO Luca de Meo visited China in early November 2023, meeting with Dongfeng Group and Geely, and discussing potential collaboration with China International Capital Corporation (CICC) [1] - Renault announced a partnership with CICC, Hangzhou Capital, and Hangzhou High-tech Investment to establish an investment fund focused on the new energy vehicle sector [2][3] - The fund aims to invest in various fields including batteries, intelligent driving, smart cabins, software, and embodied intelligence, marking Renault's first collaboration with Chinese private equity and local industry capital [2][4] Group 2 - The establishment of the fund is part of Renault's strategy to view China as a global innovation center, leveraging its technological capabilities to help Renault recover from significant market setbacks [2][5] - Renault's sales in Europe are projected to increase by 1.3% to 2.26 million units in 2024, with a notable 87.9% year-on-year growth in electric vehicle sales in the first quarter [6] - Renault has previously invested in Chinese companies, including autonomous driving firm WeRide and virtual power plant platform PowerShare, indicating a strong interest in China's innovation capabilities [8][9] Group 3 - The partnership with Hangzhou is strategic, focusing on technological innovation rather than production capacity, as Zhejiang province ranks seventh in automotive output in China [9] - Hangzhou's local state-owned capital has experience in collaborating with European automotive companies, exemplified by its previous partnerships with Stellantis and investments in companies like Leap Motor [9] - The collaboration with local capital in Hangzhou represents a new narrative of cooperation between state-owned enterprises and foreign capital in the context of China's new energy vehicle industry [1][9]