The French automaker is turning to one of the few markets where battery-powered cars are selling well to reach out to new technology and learn how to make EVs faster. The company has hired some 200 people in Shanghai, primarily hardware engineers working on the development of a sub-€20,000 ($21,106) electric Twingo, and is also looking to onboard software engineers, according to people familiar with the situation. Let’s also plan.
“We are there to learn and we will integrate this knowledge into our teams,” Francois Provost, Renault’s chief purchasing, partnerships and public affairs officer in France, said in an interview. He declined to elaborate on the hub’s recruitment plans.
Expanding into China is a sensitive topic in France, where some unions are pushing back against management efforts to push through measures including limiting remote work to 2.5 days per week. Renault’s decision to develop its new Twingo in China has been criticized internally, and the manufacturer also employs around 3,000 product engineers in India.
Renault shares fell 1.3% in Paris on Friday. The stock is still up about 7% this year.
The manufacturer reaffirmed its full-year guidance last month, making it an outlier in the industry. Peers including Stellantis NV, Volkswagen AG and BMW AG have issued profit warnings in recent weeks, citing slowing EV demand, supplier issues and a slowdown in China sales. VW and Stellantis – which have been dogged by delays in the introduction of new EVs due to software problems – have since announced plans to cut jobs and close factories.
Renault is betting on its electric €25,000 R5 city car to boost sales in the near term, and plans to introduce models including a 1960s-era 4L economy car and an electric version of the sub-€35,000 R4 in 2025 Is. As early as 2026, all of the group’s EVs – including older models – will be available with cheaper lithium iron phosphate, or LFP, batteries, Provost said.
Renault planned to sell shares of its EV and software unit Ampere in an initial public offering earlier this year due to poor demand for battery-powered cars. One of Ampere’s current goals is helping Renault attract more local partners in China, Provost said.
“For example, we work very closely with our suppliers in Europe, but the Europeans focus on higher-margin, value-added parts,” he said. “At times I am missing some basic parts. It is in China that I can find these simple, high quality parts. ,
Renault plans to deploy the lessons learned in China in its home market. Chief Executive Officer Luca De Meo is attempting to build affordable EVs in France, where labor costs are relatively high. They have repurposed local factories including one in Douai in the north of the country which is already building the new R5.
The stakes are high for Renault, which loosened ties with longtime alliance partner Nissan Motor Co last year and whose pricier EVs such as the new Scenic have not sold as well. Many consider the group too small to survive on its own, despite being 15% owned by the French government.
“We’re catching up and we’re accessing the technology bricks more quickly,” Provost said. “By 2026, our competitiveness – in terms of software, in terms of batteries – will be comparable to that of Chinese manufacturers manufacturing locally in Europe.”
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