Key Points
PARIS, July 27 (Reuters) - Western automakers are fretting about an "invasion" of cheap Chinese electric cars in Europe, prompting France's Renault (RENA.PA) to say on Thursday it was aiming to slash production costs for its electric models by 40%.. Finance chief Thierry Pieton said the best way to fend off price competition was for Renault to cut its own development and manufacturing costs...
While the targetted 40% reduction is from 2027 onwards, Chief Executive Luca de Meo said the group would start seeing significantly lower production costs from the second half of this year, thanks to a fall in raw material costs...
"It's clear we are in competition and that time is of the essence, but that's the business we are in," he said.. Delivering affordable electric vehicles (EVs) has become a priority for car makers worldwide as the shift to cleaner driving has come with high prices, due largely to battery costs...
Tavares said Western car makers needed to use "the same weapons" as their Chinese rivals, sourcing parts in lower cost countries and striking partnerships with battery suppliers that offer the best combination of energy, cost and weight...
"It means that we need to come up with a sourcing proposal that allows us to sell those cars like the Citron C3 at 25,000 euros or less in a profitable manner," he said.. Once-dominant Western automakers are also striving to regain ground in China itself, the world's largest car market, after losing share to local manufacturers...
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