While Volkswagen is closing factories and cutting jobs, Renault is unveiling a strategic plan on the first anniversary of its subsidiary Ampère, taking a close look at the Chinese approach. Read more about the state of affairs in the European car market and Renault’s plans in this article.
What’s going on?
Volkswagen is closing factories and cutting staff, while the Stellantis group is also struggling. It is not just the European car market that is struggling to keep up with the energy transition, this is happening worldwide.
However, there is one major concern that has remained in the background in recent times: the Renault Group. Until now. On the first anniversary of Ampère, the company founded by the Renault Group that develops everything related to EVs and software, the Group unveils a plan to take on the competition.
Strategic plans
Renault has announced a multi-year plan for Ampère to compete. Here are the main points:
- Accelerating the development and production of affordable, smart electric cars, including a new Twingo and Renault 5.
- Collaborating with Nissan, Alpine, and Mitsubishi to develop new EV models.
- Introduction of LFP batteries in 2026 and cobalt-free batteries in 2028.
- Developing a European Software-Defined Vehicle by 2026.
- Reduce EV development costs by 2028 and focus on carbon-free mobility.
The Chinese approach
The global car market is currently dominated by either the US (Tesla) or China. Two absolute superpowers when it comes to electric cars. This despite the fact that almost all European manufacturers are also doing their best. Think of the Volkswagen iD line and the reasonable success of Stellantis products such as the Peugeot e208 and the Opel Corsa Electric.
China is playing this game smart and is building EVs from the ground up as ‘software-defined vehicles’: cars where hardware and software work together optimally, with a flexible platform as a basis.
Advantage: even older cars are always up-to-date
This not only brings efficiency and comfort, such as lower energy consumption and seamless communication with apps on your phone, for example but also ensures that all components are kept up to date.
An example? The first-generation Tesla Model 3 is still being improved through software updates. And we are not just talking about the navigation maps, but also the thermal systems around the battery or the electric motors. Even a few years after the car has been released on the market, a software-defined vehicle can be technically improved without the intervention of a garage.
11,000 people
Ampère and the Renault Group are following the Chinese example. The first results should be available in 2026. Currently, 11,000 people are working on it. Ampère is innovating itself but is certainly also looking to ‘the example’ in the form of China. “That’s where the EV magic is happening now,” says Groupe Renault CEO Luca de Meo. “We plan to learn from that expertise and use the knowledge gained for our market here in Europe.”
LFP batteries
A strong statement with which he is saying that if nothing is done, the Renault Groupe, including Nissan, Alpine, and Mitsubishi, will also miss the boat.
Another aspect that Ampère is working hard on is reducing the overall CO2 footprint. They want to do this by embracing new technology for manufacturing steel, using electric furnaces, and also using LFP technology. This achieves the same range as with an NMC battery without using nickel and cobalt.
New Twingo
Ambitious plans, but Ampère and Groupe Renault seem confident. Particularly thanks to, for example, the opening of a battery factory right next to the Ampère factory in Douai (Northern France) and the now fully electric models from Renault: the 5, Megane, Scenic, and of course the ZOE.
Also, a car from Alpine’s electric Dream garage is a fact, while a software-defined electric Twingo should be available within two years. Together with all other brands, who will also bring their own – based on Ampère technology – car to the market, this could well be the salvation of the European car market.
