Renault is making some strategic moves by firstly ending its partnership with Valeo, and secondly by entering China to search for the world’s most advanced engine. The car manufacturer is rather determined to develop the futuristic E7A 200 kW electric motor in-house and in China as well. This move is deemed strategic, as Renault has realized the need for a cost-effective electric motor era. It is important to understand what the road ahead looks like for this car brand.
The automaker has ended its partnership with Valeo
While Renault rather proudly announced the partnership with Valeo, the automaker has chosen to shift away from this partnership. In 2023, the vision was for Renault and Valeo to co-develop the E7A 200 kW electric motor, which would introduce a third-generation powertrain into the EV sector. This collaboration was part of the “Made in France” campaign, so as to rely more on European-made products and end the dominance of Asian suppliers.
Approximately two years later, Renault has somewhat changed its vision. This automaker is no longer working alongside Valeo to develop the powertrain but alongside its EV subsidiary, Ampere. While the focus initially was on sourcing European-made products, the stator will still come from China. The stator is one of the most vital products needed to develop this powertrain.
According to the French automaker, they are scouting and trying to find this stator in France; however, the cost of the stator in France is considerably higher than the price of the same object in China. Clearly, this car manufacturer is analyzing the possibilities of finding the balance between economic realities and industrial pride. Nevertheless, Valeo has refused to pass any comments on the end of this strategic partnership.
Turning the gears and focusing on costs
This E7A 200 kW electric motor project is rather a strategic move, with the motor being assembled at the company’s Cléon plant in northern France. The motor will be assembled with STMicroelectronics, which will offer silicon carbide (SiC) modules for the inverter, necessary for improving its efficiency.
With an estimated 268 horsepower, the engine will provide about 25% more power than all other EV motors. With a rare earth focus, this vehicle aligns with the company’s mission of ensuring a sustainable mobility future. Renault is choosing to source Chinese supplies as best as possible, and the company is introducing a new era, one that can compete with low-cost Chinese automakers as well.
What is next on the cards for Valeo?
After Renault made the bold move to change directions from the initial focus of the partnership, Valeo decided to follow suit. This French supplier has partnered up with the German-based Mahle to create a 350 kW magnet-free drive system for 2028. Creating an iBEE motor that will be best for competing with the likes of Tesla and other Chinese giants.
The route that Renault is taking reflects the broader EV market trend whereby some EV manufacturers opt for specialization, whereas others choose fragmentation instead. While Valeo might have been disappointed with the decision from the French automaker, it must be noted that this car brand is known for making drastic changes at the very last minute. Renault even dropped out of Formula 1 after years due to its futuristic engine.
Where is Renault heading with its EV dream?
Speeding forward in its own league, this French automaker is going to China to find key components for its EV powertrains. The company is looking to find its place in the global market, where it will be able to compete with the likes of other vehicles.
With a hint of French engineering and a focus on Chinese-manufactured parts, the automaker is moving in the direction of following the sustainable and profitable route. The French automaker is searching for success and is doing so by landing in China. Imagine Tesla, Renault, and BYD together in Paris. This could possibly be what the future will look like.
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