Renault understands and appreciates the threat posed by Tesla and has announced it is working on a new software architecture that will be on par with the current EV leader.
During a recent presentation in Boulogne-Billancourt, France, Renault revealed that its Ampere EV unit will use a new “software-defined vehicle” design that is co-developed with Google and Qualcomm. This new architecture will operate with just 20 processors compared to the 100 that Renault currently uses. In addition, the architecture will allow for over-the-air software updates.
“This is similar with Tesla, in 2026 they are going to have the same approach, they have the same EV architecture approach,” Renault chief digital officer Frédéric Vincent said.
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Renault added that the new software architecture will help it to avoid €1.5 billion ($1.65 billion) euros of research and development expenses over a decade. It will also benefit owners by improving resale value thanks to driving and infotainment features that can be consistently updated.
Renault head of engineering Gilles Le Borgne added that the company’s software architecture will be at the level of Tesla in 2026, Reuters reports.
In the short-term, the brand’s chief executive, Luca de Meo, noted that recent price cuts introduced by Tesla are “a challenge in the short term,” but both he and La Borgne said that Renault will not engage in a price war.
“We don’t want to do what we did in the past, we want to sell our cars, we don’t want to give away our cars,” La Borgne said.
Renault plans to spin off its Ampere electric vehicle unit before the end of this year and believes it could have a market capitalization of around €10 billion ($11 billion). The spinoff forms part of a dramatic reorganization within the company that includes the establishment of a joint venture with Geely on internal combustion-powered vehicles. The Alpine brand will also morph into a manufacturer of electric vehicles.
