Renault SA and Chery Automobile Co are negotiating a
manufacturing and distribution alliance across South America that
would grant the Chinese automaker access to existing French
production facilities in exchange for capital and vehicle design,
Bloomberg reported.
The potential arrangement encompasses operations in Colombia and
Argentina, though no definitive agreement has been reached.
Under the proposed structure, Chery would utilise Renault's
Envigado plant in Colombia to manufacture internal combustion
engine vehicles, with the majority sold under the Renault marque
and remaining units carrying Chery branding, according to the
sources. In Argentina, the Chinese manufacturer is evaluating
investment in a plug-in hybrid pickup line at Renault's Córdoba
facility, where the French company would serve as primary
distributor.
The negotiations began during former chief executive Luca de
Meo's tenure, though his successor François Provost has adopted a
more conservative spending approach, the sources said. Recent
discussions indicate Chery would assume full project financing
rather than the co-funding structure De Meo had supported.
Renault declined to comment, whilst Chery representatives did
not respond to inquiries, Bloomberg reported. The
partnership would not affect Renault's existing collaboration with
Zhejiang Geely Holding Group Co in Brazil, where the companies
produce electric and low-emission vehicles, El
Espectador added.
The talks gained momentum following Chery's successful Hong Kong
initial public offering last week, which strengthened the company's
financial position for overseas expansion. Chery has maintained its
position as China's leading automotive exporter annually since
2003, according to Frost & Sullivan data, and its portfolio of
relatively affordable combustion vehicles aligns with emerging
market demand where purchasing power remains constrained.
The proposed alliance reflects broader strategic imperatives as
Chinese manufacturers seek growth beyond an intensely competitive
domestic market whilst Western automakers pursue cost reduction
through partnerships in developing regions with expanding
middle-class populations and rising vehicle ownership rates.
© 2025 bne IntelliNews, source Magazine
