[ad_1]
Renault has become the latest EV group to go to war with China’s Tesla killer BYD. The head of the French automaker is harking back to the 1940s with plans to help European automakers fight growing threats from the Far East.
In a 19-page open letter to Europe, Renault President Luca de Meo said the continent was facing an “onslaught of electric vehicles from China” and that the U.S. He warned that we need to take inspiration not only from Japan, but also from China itself. .
Now De Meo is calling for a European fund to accelerate Europe’s transition to electric vehicles before Chinese EV maker BYD takes over the market.
“A European Marshall Plan could be introduced to accelerate the renewal of ‘parks’ and significantly reduce CO2 emissions,” DeMeo wrote, referring to the number of EVs on the roads.
The Marshall Plan, known as the Economic Cooperation Act, was passed by the U.S. Congress in 1948 to help rebuild Western Europe after World War II, in part due to concerns about communist expansion.
The legislation would ultimately funnel $12 billion to 16 countries over three years.
The French automaker’s president seems to be hoping for the same for the EV market, which is at a turning point of sorts.
Automakers appear to be running out of early EV adopters and are now turning to mass-market internal combustion engine drivers who are reluctant to make the transition.
Several automakers have warned that converting these die-hard drivers to electric cars will take longer than originally thought, citing falling gas prices and poor infrastructure.
Renault’s De Meo warned that Europe’s repressive regulations are increasing the cost and lifespan of carbon-emitting cars by an additional five years since the 1990s.
Meanwhile, the U.S. boosted EV adoption domestically through a huge anti-inflation law, pumping billions of dollars into the market.
BYD threat in Europe
Renault mentioned China 23 times in his short letter, underscoring the growing anxiety among traditional European automakers as BYD enters the market.
BYD, backed by Warren Buffett, has benefited from subsidies from the Chinese government. We also have full control over our battery supply chain, helping to significantly reduce costs.
De Meo pointed out that Chinese C-segment cars have a cost advantage of between 6,000 euros and 7,000 euros ($6,500 and $7,600) over their European counterparts.
This cost advantage helped BYD enter the European market early, agreeing to build a new manufacturing plant in Hungary and sending a dedicated EV cargo ship to the continent capable of transporting 7,000 BYD vehicles. agreed.
There are obstacles that make BYD’s expansion into Europe far from certain.
The group will have to contend with brand loyalty among European drivers, rising labor costs and the threat of a crackdown by lawmakers.
In fact, the EU has already launched an investigation into BYD over potentially anti-competitive Chinese subsidies, leaving the automaker in a “state of shock”.
Despite dwelling on the China threat, De Meo also noted the importance of Europe maintaining its relationship with automakers, which are valuable trading partners for some of the continent’s biggest economies. .
“Closing the door completely to them is the worst possible response,” DeMeo wrote.
[ad_2]
Source link
