The European auto industry will not surrender its positions without a fight, and the French concern Renault shows exactly how it intends to defend its territory. While manufacturers from the East are intensively looking for loopholes for assembly on the continent, Renault Group is turning the rules of the game upside down, setting unshakable financial and industrial thresholds for its potential partners.
Instead of desperately throwing itself at every offer to fill its assembly lines, the French company is positioning its plants as a premium asset. Chief Operating Officer François Provost stated categorically that the group's production facilities are operating at full capacity. The absence of empty halls and loss-making assembly lines provides the brand with complete freedom in choosing partnerships and the opportunity to conclude only deals with guaranteed high profitability.
The self-confidence of the French is based on a solid financial foundation. The first half of the year brought Renault Group a 9.5% increase in revenue and an operating margin of 5.2% - figures that provide a serious backstop in the fight against dumping from Asia. The concern relies on the strong identity of its brands, an attractive range and a production structure free of unnecessary costs.
However, the main concern of the management goes beyond the simple assembly of coupes. According to Provo, the elementary screwing of bolts in European factories is simply an illusion of local production. The heart of the automotive economy lies in the suppliers of components, which generate nearly 95% of the added value of each finished model.
That is precisely why the French giant is making a clear appeal to Brussels for stricter regulation. The requirement is simple: if Asian brands want to sell under the sign “Made in Europe“, they must integrate the local supply chain, and not simply transport ready-made kits across the ocean. Otherwise, economic capital continues to drain away, leaving crumbs for European industry.