Renault’s Deepening Romance With Geely Beats Marrying Nissan
The French automaker’s relationship with the Chinese auto giant offers plenty of opportunities; even a merger with Volvo is conceivable.
Renault’s partnership with Chinese auto giant Geely has helped the French automaker expand its range, including the new 5 series electric vehicle.
Photographer: Emmanuel Dunand/AFP/Getty Images
Luca de Meo’s imminent departure from Renault SA to fashion house Kering SA raises an important question: How should a profitable yet subscale French automaker ensure its long-term resilience in an era of cutthroat competition and rapid technological change?
One plausible route open to Renault is to become more Chinese; it can do that by deepening an already flourishing partnership with billionaire Li Shufu’s Zhejiang Geely Holding Group Co., whose sprawling international stable of brands includes Lotus, Zeekr and Polestar. While there are risks in embracing a new Asian partner so soon after an alliance with Nissan Motor Co. imploded (that quarter-century union is now being partially unwound), Renault should consider an even more radical step: a merger with one of Geely’s core assets, Swedish automaker Volvo Car AB.