Core Viewpoint - Renault is urging the EU to pause new regulations for small electric vehicles under 4.2 meters for the next 10 to 15 years, emphasizing the need for stable rules to allow engineers to optimize pricing and technology [4][7][8]. Regulatory Challenges - The EU is preparing a regulatory framework for "affordable small electric vehicles," aiming to support the launch of cars priced between €15,000 and €20,000 [12][18]. - Current regulations are seen as disproportionately burdensome for small cars, with Renault's CEO stating that compliance work occupies about 25% of their engineers' time [7][9]. Market Dynamics - The market for small cars is shrinking, with a projected decline of over 10% in sales for A0 class vehicles by 2025 [12][14]. - The number of models priced below €15,000 in Europe has drastically decreased from 49 in 2019 to just one currently, highlighting the challenges in the entry-level segment [13]. Future of Small Electric Vehicles - Renault advocates for a stable regulatory environment to allow for the development of small electric vehicles, suggesting a clear limit on weight, battery capacity, and performance while delaying new mandatory features [17][18]. - The EU's upcoming proposal on December 10 will be crucial in determining the future of affordable small electric vehicles in Europe [19].

Renault unveiled its new electric Twingo small car on Thursday as the French automaker seeks to leverage a popular old model name and a price tag of under 20,000 euros ($23,000) to boost its electric ... ...

Core Insights - Renault is exploring global cooperation models, particularly with Chinese automakers like Chery, to enhance production efficiency and competitiveness in overseas markets [3][4][6] - The collaboration with Geely in Brazil focuses on producing and selling electric vehicles and low-emission cars, indicating a strategic partnership aimed at market expansion [4][8] - Renault's reliance on the European market is significant, with 63% of its operations tied to this region, prompting the need for diversification and risk mitigation through international partnerships [6][7] Group 1 - Renault's Chief Growth Officer, Fabrice Cambolive, stated that the company is negotiating with various automakers, including Chery, to explore potential collaboration in production and sales [3][4] - The partnership with Geely is described as mutually beneficial, allowing both companies to leverage different platforms, industrial tools, engineering technologies, and distribution networks [3][4] - Renault's interest in Chery has increased following Chery's successful IPO in Hong Kong, with discussions reportedly focusing on plans in Colombia and Argentina [4][6] Group 2 - Renault's strategy includes reducing global production costs and exploring market opportunities through partnerships, a shift initiated during the tenure of former CEO Luca de Meo [6][7] - The company has manufacturing plants in several countries, including France, Spain, and India, but faces challenges with underutilization of capacity in overseas facilities [6][7] - Renault aims to enhance its electric vehicle development speed and reduce costs by utilizing the research capabilities of its Chinese partners, exemplified by the rapid development of the Twingo electric vehicle [7][8]

Group 1: Leadership Change - Renault Group appointed Francois Provost as CEO, effective July 31, 2025, succeeding Luca de Meo, marking the beginning of the "Provost Era" [1] - Provost has extensive experience in the Chinese market, having served as COO for Renault's China and Asia-Pacific operations since 2016 [1] - His role in the partnership with Geely and the establishment of the joint venture Horse Power Technology highlights his strategic importance [1][9] Group 2: Financial Performance - In the first half of 2025, Renault reported revenues of €27.64 billion, a 2.5% increase year-on-year, with automotive revenue at €24.49 billion, up 0.5% [3] - Global sales reached 1.17 million units, a 1.3% increase, with electric vehicles accounting for 44% of sales [3] - However, operating profit fell to €1.653 billion, with a profit margin of 6.0%, down from 8.1% the previous year [3][6] Group 3: Market Challenges - The European automotive market faced a significant decline, with new car sales dropping 7.3% in June 2025 [4] - Renault's growth was primarily driven by hybrid and electric vehicles, as traditional fuel vehicle demand continued to decline [4] - High costs associated with the transition to electric vehicles pose a challenge, with the company needing substantial investment and time to see returns [4][5] Group 4: Strategic Initiatives - Renault aims to launch over 65% electric and electrified products by 2025, with a target of 90% by 2030 [5] - The establishment of the "Ampere China Development Center" in Shanghai is a key milestone for Renault's strategy in China, focusing on product development and innovation [8] - Collaboration with Geely and the introduction of Saudi Aramco as a strategic partner are part of Renault's efforts to enhance its global competitiveness [9][10] Group 5: Future Outlook - Provost's leadership is expected to leverage his experience in China to navigate market challenges and drive Renault's transformation [2][10] - The company plans to maintain a flexible business model to meet diverse market demands and aims to introduce several new models in the coming years [7] - Renault's focus on integrating Chinese innovations into its global strategy is seen as crucial for overcoming current growth bottlenecks [10]