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

It seems that BMW’s high-performance division -- BMW M – still has not warmed up to front-wheel drive vehicles. So those who had been looking forward to BMW M vehicles...
by - October 22, 2017
Porsche already has the Performance Package for their range-topping Macan Turbo, which is currently available in some countries. Soon, this model will be dethroned by something even fancier by the...
by - October 22, 2017
After the highly dynamic Polestar 1 two-door coupe – Polestar’s first ever production car -- was recently unveiled, not a few people’s curiosity was piqued as to how much they...
by - October 21, 2017
The BMW 7 Series is already highly sought after but nonetheless, the German marque is giving it a more exclusive variant for the Russian market, and they are calling it...
by - October 20, 2017
Several automakers including Porsche, Volkswagen, Smart and even Land Rover have all been victimized by cheap Chinese copycats. And if you haven’t seen it yet, the most recent one would...
by - October 20, 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