In recent months, the Argentine automobile market has been characterized by a large number of new model launches that have taken shape.
This situation is a product of the change in foreign trade policy that has occurred since the arrival of the new government of Javier Miley. We have gone from a closed economy, with restrictions on imports, during the Alberto Fernández administration, to an open system today.
Among all the movement of brands and models, the most notable news is the progress made by Chinese car companies.
BYD’s case is the most famous, not only because it has not been operating in Argentina – while other companies in that country have already been doing so for several years – but because it is the Asian giant’s main car manufacturer. However, there are other Chinese car companies that are betting big on their expansion within the region, and thus in Argentina.
The Chinese announcement affects the region
Two weeks ago, the agreement was signed between… Brazilian Renault and Chinese automaker Geely To produce and sell hybrid or electric cars in the neighboring country.
This is another example of how Chinese brands are advancing in that country, the main market in South America and the focus of most investments.
Geely has been relaunched in Argentina with a new SUV.
Renault Group and Geely signed this agreement Expanding its strategic cooperation to production and marketing, From Renault do Brasil, for zero-emission and low-emission vehicles for the Renault and Geely Auto brands in the neighboring country.
In this process, Geely has officially acquired a 26.4% stake in the capital of Renault do Brasil, of which the Renault Group remains the majority shareholder and continues to integrate the entity into its accounts.
As a minority shareholder, Geely now benefits from access to industrial resources and Renault do Brasil sales representatives to accelerate its implementation in the region’s key automotive market.
Benefits for Geely and Renault
The manufacture of Geely Auto cars, which complement Renault cars, at the Ayrton Senna plant in São José dos Pinhas, Paraná, will allow Renault does Brazil increase production And continue to enhance the competitiveness of its first-line industrial complex.
In parallel, Renault It will use GEA’s advanced multi-energy platform for Expanding its scope to zero and low emission vehicles Targeted for the Brazilian market.
From a commercial point of view, Renault do Brasil will distribute Geely Auto’s zero-emission and low-emission vehicle range in the country, thus benefiting from new growth opportunities In sales, finance and services.
The impact of the agreement in Argentina
Although the agreement between Chinese and French automakers is limited to Brazil, this process should be followed closely because it could have happened. Blows to Renault Argentina.
The Cordoba-based automaker is doing a double take. On the one hand, its relationship with Nissan has ended completely, with regard to the manufacture of the Frontier and Alaska trucks in Santa Isabel. The Japanese company stopped producing these vehicles at the beginning of last October, and its production line has already been dismantled and all equipment has been transferred to Mexico.
On the other hand, Renault is continuing its project for the new Niagara pickup truck. There are already several armed units and everything is going in their favor.
Moreover, the astonishing fact is that months ago the presence of Chinese executives, most likely from my generation, was recorded at the Santa Isabel plant.
The company never officially acknowledged this fact, but this medium was able to confirm this from company sources Delegations of executives from this country visit the Foundation With some diligence.
Renault is working on the Cordoba plant as part of the Niagara van project.
Even the source consulted admitted that, as usually happens in car companies, they are always analyzing Possible projects to be able to settle in this factory. Evaluating manufacturing possibilities does not mean that they will be tangible. In all cases, knowing what is being reported and the credibility of the source is sufficient to follow the topic closely.
Chinese executives visit Renault Argentina
The last visit to the factory by Chinese executives, as the media learned, was two weeks ago, accompanied by employees from Renault Argentina and Brazil. It is true that it may be linked to Project Niagara, the new pickup truck that the automaker is developing at that plant. It is also possible, in this case, that the Chinese employees are linked to Chery, which also has an agreement with Renault globally.
But last Thursday, an event occurred that reinforces the hypothesis of the possible decline of the Geely automobile company in the country.
The President of Renault Argentina, Pablo Sibilla, was with a group of Geely managers, visiting the dealerships of the different brands located in the city of Pilar. Some direct competitors.
According to the sources that were accessed iProfessionalThe purpose of the tour was to allow Foreign visitors will be accommodateddirectly, on Argentine market performance.
In addition to the top authority in the local company, the delegation included the commercial director of Renault Argentina, Valentina Solari.
Brand jelly actually It has been marketing its models in Argentina for years. Although with the closure of imports, its activity has stopped recently.
Currently, there is an official representative of the automobile company, which is the Excimar Group, as specified on its website. However, just over a month ago, the company sustainable cars in the south, There is no history with the brand, Geely introduced EX5 Pro. There is clearly a confusing situation regarding the representation of the automobile company, based on this fact.
Beyond that, Sibilla’s presence with Geely executives on the dealer tour in Buenos Aires indicates that there is The Chinese company’s interest in the Argentine market This may mean their direct landing in the country and not through a local representative, as was the case until now.
In the sector Renault’s Argentine subsidiary is expected to follow in the footsteps of its Brazilian counterpart and reach a partnership agreement to share projects and facilities. Which, in the most advanced case, may mean co-production of some models.
Although Renault embarked on Project Niagara, Nissan’s departure from Santa Isabel left an empty space For any type of industrial development. It should be taken into account that in the short term, the Logan, Sandero and Stepway models will not be produced at this plant. Only the Kangoo multi-use vehicle will continue to be manufactured, in addition to the new pickup.