Renault Group MD Francois Provost has told The Independent that the UK should follow the EU’s lead and put tariffs of up to 35 per cent on Chinese made cars that it imports.
Speaking ahead of next week’s Paris Motor Show, Provost – whose brands include Renault, Dacia and Alpine – said: “Renault’s position on this topic is very, very clear: the UK has been part of Europe’s ecosystem for centuries. So, I think we should have a deal between EU and UK saying that for existing capacity in UK, they should be considered as the ecosystem of European cars.
“But of course, at the same time, UK has also to decide to apply the kind of protection as an extended Europe community to allow Chinese competitors to come, but only if they deeply invest in our countries.”
The EU’s proposed Industrial Accelerator Act (IAA) is Brussels’ plan to get more cars, batteries and clean technology made within the bloc, supporting local jobs while encouraging cleaner production. The idea is to use public spending to give European manufacturing a helping hand, rather than relying so heavily on imports.
However, there’s a catch for Britain. UK-built cars aren’t automatically included in these ‘Made in Europe’ plans, and the Society of Motor Manufacturers and Traders warns that they could miss out on incentives and public contracts unless the proposals change.
Britain’s inclusion in these Made in Europe plans could be dependent on the UK government matching the EU’s tariffs on imported Chinese cars, of up to 35 per cent.
“I support to have UK embedded in IEA discussion,” said Provost, “But it's the terms and conditions. For Renault it's important, the UK is a very important market for us. It would be stupid because there is a Chinese competitor moving to EU and UK not to find the deal together.”
Asked specifically whether the UK should have the same tariffs on Chinese cars as the EU, Provost replied: “I think so.”
Chinese brands have been growing rapidly in the UK with the Chinese Jaecoo 7 topping the big plate-change month of September on registrations and Chinese brands taking close to 20 per cent of the whole market so far this year.
However, Provost was bullish about Renault’s position against Chinese rivals. “Renault cars today in Europe, they are at par or even better than any Chinese cars. You look Renault Five, look at Twingo. We have the autonomous driving, we have fantastic connectivity, we have AI on board with Gemini. So, on the technology side, which is a bit the way our Chinese competitors show off, I think we are better today in the market.
“In terms of electric, we are also at the best level. The unique gap they have is clear: cost because they import directly from China with a huge competitive advantage. So yes, it's true that for the price itself, there is a gap.
“It's where I want to convince our customers that yes, retail price is expensive overall and maybe we are more expensive than some of our Chinese competitors, but we have to consider the life of the car. Who will repair the car after five years? Who is taking care and give an extended warranty up to 15 years on the battery? Who has 10,000 outlets in Europe?
“Here I think that we have an advantage and even from a cost perspective, if you consider the total cost of ownership, we can be also better.”
However, Provost did admit that Renault does have some problems currently, especially around supply. “Today I apologise to our customers because we have four months in average waiting time to get Renault EV cars. I apologize for this, and this is due to shortage in European batteries. Of course, we are taking action.”
Renault will be using its home motor show to debut 50 new models including a Gordini sports car, new Alpine models, cut-price Dacias and a new electric Renault Espace concept, called E-Space.
“Sometimes in Europe, some people say that European citizens, they do not want to have cars, they do not like cars and so on. All of this is completely wrong.
“I'm completely convinced that European people, they like cars and they want nice cars. The problem is more problem about price. So, the Paris Motor Show is very important for Renault and we will present more than 50 models.”
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