Dongfeng-Renault China joint venture approved

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All major car brands have joint venture production in China, and it’s a case of better late than never for Renault. The French brand’s joint venture with Dongfeng Motor Corp has won the Chinese government’s approval, the state-owned Chinese automaker said yesterday. To be headquartered in the central China city of Wuhan, the JV will be a 50-50 partnership.

Renault, which has been importing CBU cars to China, will be dreaming of one big happy family. Alliance partner Nissan has operated a joint venture with Dongfeng in Wuhan for 10 years. Nissan is the top-selling Japanese automaker in China, and has delivered more than one million vehicles in the world’s biggest auto market.

The Dongfeng-Renault assembly plant, with an investment of 7.8 billion yuan (RM4.2b), will have the capacity for 150,000 vehicles plus an equal number of engines. It will produce Renault-designed petrol-powered vehicles and some electric or plug-in hybrids, as well as Dongfeng brand vehicles. No mention when the venture will start production, though.

Interestingly, Dongfeng has been linked to a big stake in PSA Peugeot Citroen, Renault’s financially-troubled French rival, and talks are still ongoing.

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Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

 

Comments

  • SamShowedMeTheHilux on Dec 09, 2013 at 9:08 am

    French cars are already a big failure globally. Nobody buys trash from Peugeot and Renault nor Citroen. Only in Malaysia, pathetic and sad losers Peuget owners think their cars are big time Continental luxury Armani cars.

    But sad fact is, French cars are on the brink of bankruptcy. This is because for years they have produced low quality toilet trash cars.

    Now with their JV with China, the nail already hit the coffin.

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