Nissan and Dongfeng Motor to manufacture Renault vehicles in China

Article by Christian Andrei, on January 2, 2012

Nissan Motor Co. and China-based joint venture partner Dongfeng Motor Corp. have entered into a memorandum of understanding to produce Renault vehicles in the country, Wuhan newspaper Changjiang Evening News reported. Specifically, Dongfeng will enter into a joint venture with Renault in the central China city of Wuhan, the paper revealed, citing sources from Dongfeng. Details about the plans for Renault's China production are not available.

The current joint venture of Dongfeng and Nissan manufactures Nissan-brand automobiles in China. In 1999, Renault and Nissan created the industrial and commercial partnership Renault-Nissan Alliance.

Without an assembly facility in China, Renault must depend on imports. Thus, sales have been minimal. During the first 10 months of 2011, Renault sold 15,958 vehicles in China, an increase by 49 percent year-on-year, according to LMC.

Dongfeng, which is a state-owned Chinese company based in Wuhan, also has partnerships with Kia Motors Co., PSA/Peugeot-Citroen and Honda Motor Co. [source: Autonews]

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