The Gauls had lost Charlemagne's glory, but they could not stop on their way. After all, if the Legal car is destined to be a story, it will at least leave a page in the middle of the fight that will catch the eyes of those who follow, rather than the words that describe it lying in a dusty corner.

At the end of may at the end of the week, Renault and nissan, mitsubishi alliance of big action affects the nerves, exposes the alliance global market current operational mode of the divide and conquer, nissan and he announced that the medium-term strategic plan about the next five years, then, is to ally Renault also external refining the reform cost 1.2 billion euros.

For the three carmakers, this round of restructuring has been a big operation from the inside out. As details emerge, there are several common concerns

With the hope of "division of labor" to avoid the risk of "separation", the three enterprises falling apart can find a stable position in the wind, rain and volatility? Can Nissan successfully save itself in its medium-term strategy in the face of a V revival? And, under the background of dongfeng Renault's defeat in China, what will be the fate of The Law system in China?

The third topic has a lot to do with China.

The fate of Legal system cars in China is both a strong topic and a weak topic in the industry in recent years. The reason why it is a weak topic is that with the decline of sales volume dimension, Law system is no longer brilliant in the Chinese market, and the voice of the outside world is often reported in the newspapers. After a long time, everyone seems to be a little tired of this topic.

The reason why it is a strong topic is that at the critical inflection point of electrification transition, COVID-19 peak and low growth of global car market, legal system is experiencing an important juncture of opportunity and crisis. If we take a bird's eye view of the fundamentals of this topic from a broader global perspective, there are too many new industrial logic to be sorted out and many details to be re-examined and interpreted.

A crucial moment for the French car

Renault's present experience is a mirror of the legal system in the world.

Renault has struggled in the past year, and its alliance partner, Nissan, has overshadowed performance in many of its core dimensions. Like Nissan, they suffered their worst year in a decade, according to the company's fiscal 2019 results.

According to the explicit figures, Renault's operating revenue for the fiscal year was 55.537 billion euros, down 3.3% from 57.4 billion euros in 2018. Operating profit fell by as much as 30% to 2.1 billion euros, down by 880 million euros from a year earlier. The operating margin was 4.8%, down from 6.3% in 2018; Net profit plunged 99.5 per cent year-on-year to €19m.

In response to the embarrassing performance, Renault decided to cut some of its core targets for 2020, lowering its operating margin target to 3-4 per cent from 4.8 per cent in 2019 and cutting its 2019 dividend by almost 70 per cent.

The current 2020 is a turning point year for Renault.

In July, the company will welcome in a new chief executive, Luca DE Meo, the former VW executive who spearheaded the revival of Seat and revived the brand's global sales. To poach the staff, Renault promised huge returns, saying in an internal Renault document that it would pay Mr DE Mayo about €5.8m, almost 57 per cent more than Thierry Bollore's 2019 salary.

But Mr DE Mayo is under pressure.

Like its rivals, Renault is grappling with a global downturn in demand for new cars and has forecast small declines in markets such as Europe, Russia and China by 2020. They are also under pressure to meet tougher emissions targets and to invest heavily in new businesses such as electrification and autonomous driving, weighing the costs against the benefits.

DE Mayo's career has limitations, such as a lack of international experience.

During his more than two decades in the auto industry, he has focused most of his business on Europe, including the most iconic brand, Seat, for five years. It is doubtful whether he will be able to reorganise his business well in the crucial years ahead, with the ability to run a multicultural business (integrating Asian/European operations) and the political savvy to manage Franco-Japanese relations.

Cash flow is also a potential problem.

While Nissan's financial contribution to Renault is declining, that could affect Renault's level of investment in research and development in key areas such as self-driving cars and electrification. Now that COVID-19 is at its peak, Renault's cash flow is even worse.

Bruno Le Maire, the French finance minister, said in late May that Renault, which was hit by the outbreak, could go bankrupt if it did not get help soon. He added that Renault was in a precarious position and hoped the company would recognise the situation as soon as possible in a passive environment.

"Yes, Renault could disappear." Revenues fell 19 per cent to €10.1bn in the first quarter, including a 36 per cent drop in Europe, where the coronavirus blockade was felt in several core markets, Mr Lemaire said.

According to the latest information from the May 29 event, Renault will reduce its global production capacity from 4 million vehicles in 2019 to 3.3 million in 2024, and will cut nearly 15,000 jobs worldwide. Renault aims to save 2 billion euros over the next three years by reducing the number of subcontractors in production and scaling back global gearbox manufacturing through a comprehensive restructuring and operational reassessment.

Halfway through 2020, Renault's travails continue.

In a decision

Different from the absolute leading position in the European headquarters, Legal system cars have been relatively dull in the Chinese market in recent years. In April this year, the joint venture was dissolved due to the "seven-year itch"

Will Psa follow Dongfeng Renault in leaving China? Will the coVID-19 outbreak be the last straw for the law system? With such a bad environment, will the future of DPCA be in doubt?

To be fair, PSA is in relatively good shape globally, but the legal group is better at operating in Europe and, not to mention having little presence in North America, has performed poorly in China.

Because of this, with the exit of Dongfeng Renault, the argument that "Legal system car may lose to China" also became very popular. According to The Car Commune, the current law system has come into a critical juncture of advance and retreat.

Let's talk about the legal dilemma.

Both Renault and PSA are hoping to maintain their status as global carmakers in a new industrial transformation. But a successful global car company will never settle for a corner of Europe, and its ambitions will have to expand beyond it.

So, in this strategic expansion process, which markets are the most important, or in the premise of limited resources and reserves in all aspects, which markets will be identified as Renault's external expansion of the highest priority?

For legal systems, except Africa and South America (former colonies of France), North America and Japan and South Korea are not as important as China. Because of this, China is the most important market for legal car companies on the road of "entering". No matter how difficult it is for China to win the leading position of global car companies, it will be hard to get it down.

The so-called "retreat" is the opposite of "advance", only maintain the current advantage of the market, to ensure the leading position of the European stronghold. As GM continues to slim down, it is focusing on high-margin markets such as North America and China, moving away from areas where sales are weak and losses continue, cutting costs through strategic shrinkage and focusing on more growth and future-oriented businesses.

In fact, for the current legal system, the choice to advance or retreat has its inherent logic and reasons, but the process of making the choice is not only related to the pattern, but also tests wisdom.

If we go forward, we are bound to continue to develop in the Chinese market and understand the needs of Chinese consumers. From the perspective of current layout, PSA is still sticking to China. At present, Renault has basically abandoned the joint venture passenger vehicle in China, but the commercial vehicle field (Brilliance Renault) continues, and the future development focus will shift to electric vehicles (imported) and light commercial vehicles.

It takes courage to advance; It takes will to retreat.

For the Legal system car, no matter which road to choose, it is a challenge and risk coexist, it is not easy to go. Clinging to Europe and losing its position as a global car company, many values, including supply chains and brands, will be greatly compressed. In the long run, it is hard to imagine that a strong global car brand will strike a deadly blow in France.

For now at least, Carlos Tavares, THE head of PSA, wants to make a bet in China, a bet with some chance of success, but not much chance of success.

Because of this, the current legal system is at a crucial moment, whether it is the new layout of the global market or the new choice of the Chinese market. Every step forward determines the future direction and the transformation success or failure of electrification inflection point. Tang Is still hesitant and the whole legal system is in a tangle, but it seems too early to make an arbitrary conclusion on the fate of China.

The Gauls had lost Charlemagne's glory, but they could not stop on their way. After all, if the Legal car is destined to be a story, it will at least leave a page in the middle of the fight that will catch the eyes of those who follow, rather than the words that describe it lying in a dusty corner.