(Yicai) Oct. 31 -- French automaker Renault announced yesterday that its electric vehicle unit Ampere will work closely with Chinese partners to develop new models. Yicai also learned that Renault has struck a deal with a Shanghai-based independent car design company.

The French auto giant said it has set up a research and development department called Advanced China Development Center. Renault China is also looking to recruit high-voltage battery specialists, steering system leaders, motor experts and other positions related to research and development of new-energy vehicles, according to information from an online job-hunting platform in China.

The newly formed R&D team will be run by Ampere, a wholly owned subsidiary of Renault, and will report to Renault France. Regarding battery supplies, Renault has reached a deal with Chinese battery giant Contemporary Amperex Technology, a person close to Renault China told Yicai.

In addition, multiple independent sources have confirmed to Yicai that Renault has outsourced the vehicle design project to Shanghai Launch Automotive Technology, with Renault’s team more focused on management and review. Launch was one of the first automobile design companies established in China, and has participated in the design of products for companies such as Peugeot, Ford, Citroen and Vinfast.

In recent years, there have been more and more cases of Chinese car firms or industrial chain companies tying up with large foreign firms and taking their own technologies into overseas markets.

In addition to Renault, Volkswagen is strengthening its Hefei R&D center and is working with Chinese companies such as Xpeng Motors and Horizon Robotics. Jaguar Land Rover is planning to use Chery’s technology platform to develop new Freelander models and Leapmotor will supply NEV-related parts to the Stellantis Group.

Faster production and lower costs are key reasons why overseas car companies have chosen to cooperate with Chinese firms. A member of the planning department at a Shanghai-based car company told Yicai that mass-produced models from European car firms are more costly to produce than those developed in China by CNY10,000 to CNY20,000 (USD1,405 to USD2,810) per car. It also takes at least 36 months to develop an electric car in Europe, but it can take as little as 24 months in China, the person said.

Editor: Tom Litting