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Renault’s factory in São José dos Pinhais (state of Paraná) stopped 41 days throughout 2021 because of semiconductors shortage. For the same reason, between Monday and Friday the unit’s line work will be interrupted again. To the impossibility of working at full speed, which has become routine in the automotive industry, is added, currently, a strong pressure of costs. Despite the challenging environment, Renault’s global management is about to announce the value of a new investment plan, necessary to develop and produce, in Brazil, a future family of vehicles.
A little less than a month ago, the automaker announced that the Brazilian plant would be prepared to produce a new vehicle platform. This platform will serve as the basis for different new models. It is an important renovation, for several reasons. It is the first major change in platforms for the brand since 2007.
In addition, this new base also bears the signature of the Renault-Nissan-Mitsubishi alliance, which for more than one occasion seemed doomed to failure. The initiative also provides an opportunity for Brazil to be included in the transportation transformation process, since the new platform will also be used to produce electric cars.
The size of the new investment has yet to be defined. But, according to the CEO of Renault Brazil, Ricardo Gondo, the plan is bold. Besides the new platform, it includes a new engine. Therefore, it will require a large amount.
The executive is optimistic about the willingness of the parent company to invest in Brazil. A year ago, the company seemed more hesitant. In March 2021 an investment plan shorter than usual was announced – covering the period between 2021 and 2022 and totaling R$1.1 billion; resources already practically all used in the modernization of products already known.
Despite the plans for an electrification-oriented platform, for Mr. Gondo the production of 100% electric cars in Brazil will still take a long time. “Unlike Europe and the United States, this type of vehicle is still expensive for the Brazilian consumer in general,” he says. The executive recalls that the European consumer also receives tax incentives from governments to exchange the car for an electric model.
Even so, Renault intends to be recognized by the Brazilian public for the electrification of its line. In addition to the two 100% electric models already sold in the country – the Zoe compact model and the Kangoo SUV – next week, the company will introduce the Kwid compact SUV in an electric version. In Brazil, the 100% electric cars are all imported.
The French automaker is also studying the return of the Megàne to Brazil – the name is the same as one of the first models sold by the company in the country, but the Megàne that has just been launched in Europe is different. It has a pickup body and an electric engine.
Despite the high prices of electric cars serving, for now, a niche of the Brazilian market, Renault has plans, in the future, to popularize this type of model through sharing services. The mode is part of Mobilize, a company of the group launched in Brazil in the middle of last year. Sharing and long-term rental are among the new products offered by Mobilize and have helped to increase the company’s revenues.
Renault’s electric vehicles also continue to run on Fernando de Noronha. The project, part of the archipelago’s decarbonization plan, began three years ago. With the delivery of ten more vehicles a few days ago, the electric fleet in Noronha now totals 46 units. In a partnership with Neoenergia, the project includes solar panels for the installation of two clean energy plants.
“Renault was one of the first to enter electric mobility,” says Mr. Gondo, a mechanical engineer who, before taking over the automaker’s command in Brazil three years ago, held different positions in the local operation and also in Europe. According to him, there is no prediction when the supply of components will be resumed. Meanwhile, he says, the brand is working to establish its identity.
Electrification is the group’s global focus. In January, the Renault-Nissan-Mitsubishi alliance announced a $25.8 billion investment program over the next five years focused entirely on electric cars.
Source: Valor International