Renault weighs making cars with China’s Chery in South America
News Summary
Renault is in talks with China's Chery Automobile for carmaking and sales partnerships in South America, as both manufacturers seek growth in the region, according to sources. The discussions include plans for Colombia and Argentina, where Chery would gain access to Renault's existing factory network in return for providing capital and product design. Specifically, Chery intends to use Renault's plant in Envigado, Colombia, to produce combustion-engine cars, with most rebadged under the Renault brand and the remainder sold as Chery vehicles. At Renault's Córdoba factory in Argentina, Chery is considering investing in a plug-in hybrid pickup truck line, with Renault serving as the general distributor. This collaboration would not affect Renault's existing projects with Geely in Brazil. The talks reportedly began under former Renault CEO Luca de Meo, with current CEO Francois Provost adopting a more cautious stance on spending; the latest discussions suggest Chery would fully fund the projects.
Background
Renault has been actively pursuing partnerships to reduce costs and tap into growth markets. The company already collaborates with China's Zhejiang Geely Holding Group in Brazil to manufacture and sell electric and other low-emission vehicles, reflecting its strategy to optimize operations and introduce technology in emerging markets. Chinese automakers are aggressively expanding into overseas markets, particularly in electric and hybrid vehicle technologies, to counter fierce domestic competition and seek global growth opportunities. Chery Automobile's recent successful trading debut in Hong Kong has further bolstered its financial capacity and willingness for international expansion.
In-Depth AI Insights
What are the deeper implications of this collaboration for Renault's long-term strategy and emerging market position? This partnership signals Renault's deepening