Renault Wins Initial Bidding to Supply France’s Emerging EV Fleets

November 7th, 2011 BY njkaters | No Comments
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French automaker Renault recently succeeded in a first round of public bidding for electric vehicle deliveries held by French companies. Postal carrier La Poste worked with 18 French corporations and procurement agency UGAP to administer the bidding. The four-year delivery timetable should yield 15,637 electric vehicles split among participating businesses. These vehicles include the Renault Kangoo ZE van and two unnamed vehicles with electric drive systems. Renault, La Poste and other participants engaged in an 18-month discussion regarding zero-emissions transportation that showed the nation’s commitment to emissions reductions.

The winning bid for Renault was $1.4 billion US with all deliveries due by 2016. This bid includes the Kangoo Z.E., a two-seat delivery van and a passenger sedan still in development. The big winner amongst participating companies was La Poste, which will receive 10,000 all-electric vehicles. The remainder of Renault’s production run is slated for ERDF (1,500), UGAP (1,200), Veolia Environment (510) and GDF-Suez (450) with smaller numbers to 14 French companies like SAUR and France Telecom Orange. The centerpiece of the bidding is the Kangoo ZE, a versatile van useful during deliveries, service calls, and daily commutes.

UGAP hosted forums featuring competing automakers whereby French businesses could voice their concerns. These “competitive dialogs” brought representatives from each business to the table with automakers like Peugeot and Renault. Purchasing staff could speak frankly about vehicle pricing, maintenance packages and fleet options before the bidding process. This monthly discussion allowed automakers to bring their fleet EV options to the table and adapt their bids based on client interest. The example set by UGAP, Renault and La Poste must be replicated elsewhere to streamline EV fleet development.

Renault’s success during the UGAP bidding process supports the country’s commitment to green job creation as well as EV development. The automaker has built the Kangoo ZE at a dedicated plant in Maubeuge since last summer. Representatives from Renault estimate that this initial bid could yield total sales of 50,000 by 2016 as French businesses expand their EV fleets. The Renault Kangoo ZE has been available at 370 dealerships throughout France since September 30, 2011 with a retail price of $21,222. This large-scale commitment to Renault’s EV technology should boost factory jobs, encourage adjustments in retail prices and push the automaker toward additional models.