Tag Archives: Renault

OEMs Chasing the Well-Heeled

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Higher margins matter. For now. . .

By Gary S. Vasilash

One of the issues that consumers face in the new-car market in the U.S. is the non-trivial sticker price. According to Kelley Blue Book, the average transaction price for a new vehicle was $48,397 in September.

Charlie Chesbrough, Cox Automotive Senior Economist, said of the number, “One reason transaction prices are lower in 2024 is that many buyers are choosing smaller, less expensive vehicles. The subcompact and compact SUV segments are outperforming the market this year, and by no coincidence, they’re also two of the lowest-priced product segments in the market.”

Two points about that:

  1. It is surprising to think that prices are “lower in 2024” when that number is above $48K.
  2. Subcompact and compact SUVs are growing in popularity, but it seems the likes of GM and Ford are still more interested in the other end of the spectrum, which helps with their earnings now, but perhaps not for the long run, when people simply can no longer accept high monthly payments. (Given the number of large, expensive vehicles that are still being sold, it is clear many people continue to be accepting. But at some point other bills are going to take precedence. After all, when the average monthly car payment is on the order of $750, and the Bureau of Labor Statics found that car insurance premiums increased an average 20% between June 2023 and June 2024, something’s got to give.)

This phenomenon of going for the upper end of the market is not just one in the U.S.

Renault Rafale E-Tech 4×4 with the Atelier Alpine features a chassis and agility control system developed by the engineers of Alpine Cars. There is a self-adjusting ting smart suspension with a camera for predictive control. (Photo Clément Choulot / DPPI)

Renault just introduced a new plug-in hybrid crossover, the Rafale E-Tech 4×4. It is a 300-hp vehicle that has a 22-kWh battery that the company says can power the car some 105 km (65 miles) on the European WLTP schedule (which is different than the EPA).

What did Bruno Vanel, VP, Renault Brand, Product, Revenue & International Markets Expansion, say of the new vehicle represents? It “symbolizes our move upmarket and our legitimacy to conquer all customers with a high-performance version.”

When you think of European vehicles that are (1) upmarket and (2) high performance, odds are something from BMW comes to mind. And this is probably the case in France, as well.

But Renault wants some of those higher margins, too.

HORSE and EREVs

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Extended range electric vehicles are just the thing for engine manufacturers. . .

By Gary S. Vasilash

Not only is there an array of electric vehicles of all sizes and price points rolling out of Chinese factories, another type of “New Energy Vehicle,” the Chinese government’s term for things that are electrified, that is also proliferating is the extended range electric vehicle (EREV).

Essentially an EREV is like a plug-in hybrid. It uses an internal combustion engine, electric motor and battery. The engine doesn’t turn the wheels, the electric motor does. The engine performs as a generator, adding power to the battery.

If you’re in a company that produces internal combustion engines then hybrids—including EREVs—are ideal because they require what you’re producing, unlike a full battery electric vehicle that sees engines as nothing more than tech that has passed its sell-by date.

HORSE is a company that makes engines. It used to be the powertrain operations of Renault Group. A decision was made to hew it off from the company.

And Geely, the Chinese OEM that is making EVs, EREVs, and other electrified vehicle variants, invested in HORSE.

Renault owns 45%. Geely owns 45%.

The remaining 10%

Aramco. Yes, the petroleum company.

EVs don’t need liquid fuels. Things with engines do.

HORSE is working with Marcopolo, the largest bus manufacturer in South America, and WEG, a Brazilian manufacturer of electronics.

The Volare Attack 9 microbus for the South American market is powered by a range extender (a.k.a., internal combustion engine that operates like a generator). (Image: HORSE)

They’ve developed the Volare Attack 9 microbus.

It is an EREV. And its engine will be powered by bioethanol. It’s a 85-kW turbo 1.0-litre, three-cylinder.

The bus, which is to become available in 2026, will have a range of 280 miles.

Certainly a good thing for a microbus.

Patrice Haettel, Chief Executive Officer at HORSE, said: “We hope this will be the start of what will be a range of sustainable solutions using this technology to debut in the region and beyond.”

Yes, more range extenders.

Presumably Geely’s EREV expertise has more than a little to do with the powertrain in the Volare Attack 9.

And the propulsion system makes a lot of sense for those who are not ready to fully embrace electric vehicles or for whom EVs simply don’t make sense.

EREVs in the U.S.?

Wait until next year. Ram will bring out the Ram 1500 Ramcharger to kick things off.

Seems curious how traditional OEMs are lagging in what is likely to become an ever-more important space.

Something About HORSE

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Thermal engines still matter. . .

By Gary S. Vasilash

One of the more bizarre exercises in automotive branding occurred last year when Renault created HORSE.

It is a company that is based on designing, engineering and producing internal combustion engines (and, to be fair, hybrids, too).

You know, those things that generate horsepower.

2.0-liter turbocharged diesel from HORSE. (Image: HORSE)

HORSE is a stand-alone company based in Madrid that encompasses eight manufacturing operations with a production capacity of 3.2-million units per year.

Last year, when HORSE was announced, the CEO of the company, Patrice Haettel, said, “In 2040, combustion and hybrid vehicles will still account for more than 50% of global sales.”

Given what’s going on in the market right now, he’s undoubtedly right.

HORSE announced last week that it has signed its first contract with a company that is not affiliated with Renault.

It is HABAŞ , a company based in Türkiye. The company will start producing light commercial vehicles.

It is sourcing engines from HORSE. 2.0-liter turbo diesel engines.

According to HORSE the engine meets Euro 6d+e emissions regulations and can run on B10 diesel, so there’s that.

So. . .

There are large parts of the world where advanced thermal engines matter. Sure, there will be growth in EVs.

But diesel- and gas-powered powertrains aren’t going away any time soon.