Nowadays, almost all car manufacturers are working hard to electrify their brands, and regard zero-emission pure electric power as the only choice. If they do not move in this direction, they will not be able to pass EU Phase 7 and subsequent stricter regulations. Despite this, some car manufacturers still believe that pure electric power is not the only solution, and they also believe that the traditional internal combustion engine power can continue to exist in the world.
from France Renault and its own brand Geely Auto . Recently, it signed a cooperation agreement to invest 50% of each to establish a new company as a research and development and production base for oil-electric power and high-efficiency fuel power. Renault’s Treasurer Thierry Pieton said that it is expected that by 2040, the global market share of gasoline and traditional fuel vehicles will not be less than 40%. Despite this, Renault's goal of becoming a pure electric brand in the European market by 2030 has not changed, and Geely Auto has not adjusted its current focus, let alone the unshakable EU regulations. So what is the purpose of the establishment of this company?
Market analysts said that the establishment of this new company has two tasks: First, let the two automobile groups focus more on the development of electricity power during the transition period; second, supply oil and electricity and traditional fuel-powered models to provide some markets with insufficient or slow development of electricity power. According to CNBC's analysis, the profit of to manufacture traditional powered models still produces a lot of electric cars. Although the manufacturing profit of electric cars will gradually increase, it will still take some time to achieve it, and for investors, the operating policy that can bring higher profits is even more lovely. The new company established by Renault and Geely will cover more than 130 countries and regions around the world, including 17 manufacturing factories and 5 R&D centers, with a total of about 19,000 employees. However, whether Renault and Geely's cooperation will change in relationships with Renault's existing allies Mitsubishi and Nissan is another issue worthy of consumers' attention.
