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

The Europe-bound WRC hatch developed by Toyota and Gazoo Racing team will be limited to just 400 examples as reported by AutoCar this week. Otherwise known as Gazoo Racing Masters...
by - July 21, 2017
Even cops get excited when they’re assigned to drive the best cars in the market. In Austria, police officers drive around in a Porsche 911 Carrera while in Milan, authorities...
by - July 21, 2017
Subaru has already announced that the all new Impreza will be out by fall this year. The 2018 model year not only gets a number of new upgrades, but it...
by - July 21, 2017
Do you ever wonder what challenges automakers have in selling limited edition cars? It’s different for each company but it can get stressful if the demand is high instead of...
by - July 21, 2017
Alpine is said to be developing an SUV which is believed to be the Porsche Macan’s closest rival. According to AutoExpress, the newly revived performance brand has been looking to...
by - July 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