Renault Group CEO Luca de Meo says now is the time for Europe's car industry to "find a deal" with China, after the European Commission approved substantial import tariffs on Chinese-built EVs.
De Meo, who has long been vocal in his belief that protectionist policies are an ill-conceived means of fostering competition, was speaking to journalists at the Paris motor show, shortly after tariffs of between 17.4% and 35.3% were imposed on all EVs built in China and shipped to the EU.
He has previously argued that pushing up the price of EVs from competitively priced newcomers deprives car buyers of choice and suggested that the EU should instead look to nurture its automotive industry with a cohesive industrial strategy that encourages innovation and supports vehicle production.
And now, with the tariffs imposed on a permanent basis, de Meo has said Europe could miss an opportunity to bolster the global competitiveness of its car industry, which represents 8% of Europe's GDP and employs some 30 million people across the region.
He acknowledged that "it's going to be a little bit more difficult for some Chinese brands to leverage a competitive advantage in European markets" and that localising production – as BYD and Chery are doing – is one way of them "integrating differently in a deeper way into the ecosystem".
But there will be just as significant an impact on European manufacturers, de Meo cautioned, because restricting competition also stifles innovation and reduces the ability of European manufacturers to learn from their rivals.
"Rather than talking about import duties," he said, "why don't we talk about the competitiveness of Europe? Do we have control of the value chain? How do we co-ordinate regulations and fines and deadlines?"
He called for a "good discussion on the industrial policy strategy for automotive" to determine "what is missing, what we should do differently and what we can copy from other areas of the world – maybe even from China – that have been pretty successful".
He suggested that working with the Chinese car industry – rather than restricting its ability to compete internationally – could be a "stimulus" for Europe's car manufacturers, "because we have to reinvent ourselves".
"We have to invest in new powertrains – not only electric – and we need to invest in software, because our capability in Europe is not enough," he said.
Renault is already leaning on China's EV expertise in the development of its new Twingo supermini, which is being engineered in consultation with a Chinese engineering firm with a view to optimising its profitability and accelerating its speed to market.
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