Renault Takes Big Stake In Chinese Electric Car Maker

DEC 22 2018 BY MARK KANE 8

Renault will expand its EV presence in China through acquisition

Renault Group and Chinese company JMCG announced an agreement in the EV field, according to which Renault Group will take a “significant stake” of JMEV (electric vehicle subsidiary of JMCG).

The JMEV is described as one of the main EV players in China, with several models on the market and sales result of 37,000 in 2017 and 50,000 expected in 2018. In other words, total sales of JMEV is pretty similar to Renault results in Europe.

More details to be revealed later.

“Groupe Renault will thus complete its offering, increase its presence in the country and further support JMEV development.Since 2015 JMCG has successfully established the company JMEV in Nanchang (Jiangxi province). JMEV has produced and sold 38,000 electric cars in 2017. Thanks to its dynamic teams and the strong growth of new energy vehicles in the country, JMEV expects to sell 50,000 electric cars in 2018.”

“This agreement will be reviewed by the relevant authorities in China during first half 2019. JMCG and Groupe Renault expect to close the transaction in 2019. At closing, they intend to explain in more details their cooperation at an event in Nanchang.”

François Provost, Chairman of Asia Pacific Region, SVP, China Operations, Groupe Renault, said:

“JMEV, the future joint venture with JMCG is fully in line with Groupe Renault’s strategy, aimed at establishing a solid position in the growing and high-potential market of EV in China. JMEV is an important local actor. This project is also very complementary with Groupe Renault other activities in China.”

Wan Jianrong, General manager of JMCG, stated:

“Groupe Renault is a globally renowned automaker with leading electric vehicle business in Europe. JMEV’s cooperation with Groupe Renault therefore, will promote its future development that fits JMCG’s strategy.”

JMEV EVs

Categories: China, Renault

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8 Comments on "Renault Takes Big Stake In Chinese Electric Car Maker"

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InsideEVs should increase coverage of Chinese EV companies that are currently manufacturing and selling EVs in thousands instead of vaporware from VW, Hyundai, Rivian, etc.

I agree — there are dozens of Chinese start-up and established EV manufacturers.

The real story here is to ask:

Is this a Chinese JV IP transfer check-valve in favor of China?

… Is China playing the long game and Renault playing the short game?

It’s no secret China views industrial expansion and global dominance of key industrial sectors as a national security military mission which anyone not China (or beneficially owned/controlled by China Inc) making the widget is the enemy… China is willing to short term collaborate with the enemy when it serves to accelerate their longer term end-goal.

Or perhaps all of the above is misplaced skepticism and China’s intent in these many EV JV’s they are entering is to form long term mutually beneficial relationships.

“…All Chinese companies, whether they are private or owned by the state, are now part and parcel of the party’s massive overseas espionage campaign…

the party’s aggressive plan to dominate the cutting-edge technologies of the 21st century…” source:

https://nypost.com/2018/12/22/how-arrest-of-chinese-princess-exposes-regimes-world-domination-plot/

Connect the dots…

In EVs I believe the European or American OEMs have no advantage over their the Chinese except for Tesla. The transfer of knowkege will actually happen both ways as they both learn together in the new developing industry.

@ Najeeb said: “…. The transfer of knowkege will actually happen both ways..”
————-

Nope…

It’s literally illegal in China for core industrial IP knowledge to be transferred out of China… it’s is considered treasonous for any Chinese citizen to facilitate outbound core industrial IP transfer… violation subject to capital punishment.

On the other hand Chinese citizens and Chinese owned companies are obligated/required to gather core industrial IP by whatever means available for the benefit of the state.

“…In addition to traditional espionage, China partners civilian Chinese companies with American businesses to acquire technology…” source:
https://en.m.wikipedia.org/wiki/Chinese_espionage_in_the_United_States

All the while thanks to US regs which are easily a decade behind Euro / Asian safety regulations it costs to much to dumb their products down for the US markets so they pass.
Basically, the US automotive mindset is still stuck in the 1970’s.

Stuck in the 1970s to protect American manufacturers and dealers