Renault relies on a dangerous strategic alliance with the Chinese Geely

Renault relies on a dangerous strategic alliance with the Chinese Geely

A “big thank you to Li Shufu”. Luca De Meo, Managing Director of Renault, publicly paid tribute to the founder and owner of the Geely Group on Tuesday. In a morning dedicated to investors, the leader of the Tricolor Group announced the 50:50 sharing of all its thermal and hybrid engine technology with the Chinese manufacturer. As a result, while discussions with its historical ally Nissan are bitter and difficult, Renault is making a strategic bet to network with Li Shufu, the ubiquitous and expansionist Chinese billionaire, who will thereby have access to both Renault and Nissan technology Has. Not without the Japanese being very reluctant to give a Chinese access to their patents! Are the French bringing the wolf into the sheepfold? Thank you Li Shufu? Can’t the latter rather say: Thank you Renault?

Geely already owns Volvo Cars (cars, 82% stake). He owns 50% of smart cars with Mercedes-Benz. Geely is also the reference shareholder of Mercedes-Benz itself and the AB Volvo Group (trucks), which also owns the former truck business of… Renault. At a time when economic-diplomatic relations between China and the West are going awry, while Xi Jinping emerges as the absolute master of communist China, where Western industrialists such as Carlos Tavares, CEO of Stellantis, denounce the politicization of the business climate in the former Middle Empire with a nationalist escalation, Renault’s calculus could work out in the short term. Granted, Geely is a private company. But Li Shufu is considered close to Beijing’s power.

Reference: www.challenges.fr

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