Renault sends mixed Chinese messages

Brilliance China Automotive Holdings

23/12/2021 07:20

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are their own.)
    By Pete Sweeney
    HONG KONG, Dec 23 (Reuters Breakingviews) - Renault
 RENA.PA  is cutting more losses in the People’s Republic,
letting its van joint venture with Brilliance China
Automotive  1114.HK  go into restructuring as its
Chinese partner’s struggles continue. The French automaker had
already ditched its main passenger-vehicle JV with Dongfeng
Motor  0489.HK  in 2020. That appeared consistent with its
agreement with global-alliance partner Nissan Motor
 7201.T  to refocus on core regional markets – in Renault’s case
Europe, Russia, South America and North Africa, leaving Nissan
and fellow alliance partner Mitsubishi Motors  7211.T  to lead
in Asia.  
    Renault shareholders can celebrate the company’s decision
not to throw good money after bad in an increasingly competitive
mainland market. Nissan, on the other hand, might question why
the French nonetheless established a brand-new
venture in-country with Geely  0175.HK  to make hybrid electric
vehicles in August. The project is ostensibly focused on models
for exports, but still. Core regional market or not, China is
hard to leave.(By Pete Sweeney) 
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 (Editing by Antony Currie and Thomas Shum)
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