Renault cannot afford discount race with Tesla, Chinese peers, executive says

MUNICH (Reuters) – Renault (EPA:) cannot afford to enter a discount race with Tesla (NASDAQ:) or Chinese rivals, the French carmaker’s head of engineering told journalists at the IAA (NYSE:) Munich car show.

“The good strategy is to maintain prices and to adjust fixed costs,” Gilles Le Borgne said.

Renault’s high exposure to Europe makes it one of the most exposed names to new competition from Tesla and Chinese rivals in electric vehicles, UBS wrote in a note this week.