Renault aims to strike final deal with Dongfeng Motor and build cars in China

Article by Christian A., on February 1, 2012

Renault seeks to negotiate a final agreement with Dongfeng Motor Group Co. this year in order to manufacture automobiles in China, according to the Xinhua news service citing a senior Renault executive, During a meeting of the French National Assembly's Economic Affairs Committee, Renault's COO Carlos Tavares has said that they hope to be able to reach a final deal this year. He added that the agreement will enable them to establish themselves "industrially" in China.

Last month, Renault and Dongfeng inked a memorandum of understanding to build a joint venture in the central China city of Wuhan. Dongfeng currently has a successful joint venture with Nissan, which is Renault's corporate partner.

The Japanese vehicle manufacturer is the third bestselling brand in China, posting sales of 835,217 units in 2011. It achieves third place, running behind Toyota and Volkswagen. On the contrary, Renault sold only 24,275 automobiles in China last year -- all of which are imports.

Nissan and Renault CEO Carlos Ghosn had previously stated that Nissan would take the lead in China, says Autonews. In order to complete any deal, Renault will have to go through the regulatory red tape.

In an effort to steer clear from excess production capacity, the central government of China recently set tougher limits on foreign automotive investment. Even so, Renault has made some initial strides to expand in China. In 2011, the company increased its dealership network in China from 50 to 80.

Topics: renault, china

If you liked the article, share on:

Comments

Recommended

One of the main features that have appealed to Cadillac’s customers is its Cadillac User Experience system or CUE. This is once again expected to change as the brand recently...
by - February 22, 2017
Ever since the Regera premiered in 2016, Koenigsegg has been firm about increasing its coverage around the globe. Part of the idea was to ask its employees in Angelholm to...
by - February 21, 2017
There is no harm in admitting that both the conventional and the hybrid versions of the Lexus LC 500 are real stunners when it comes to its exterior styling. Even...
by - February 21, 2017
Jaguar is placing three new Ingenium engines on the F-Pace crossover, XF saloon and XE sedan for the 2018 model year. According to Jaguar’s recent announcement, the updates will also...
by - February 21, 2017
After Volkswagen snagged Toyota’s crown as the world’s best-selling automaker, there’s no stopping the Japanese manufacturer from dominating the hybrid arena. As of January 31st , Toyota’s increasing global unit...
by - February 21, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries