Renault Forms Chinese Joint Venture Partnership with Dongfeng

RenaultRenaultFrance, 1898 > present189 models
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has signed a €870 million joint venture partnership with Chinese automaker Dongfeng. The deal will including building a new factory in Wuhan, China, with an initial capacity of 150,000 vehicles a year, and the first vehicles are due to be completed in 2016.

The new joint venture company called Dongfeng Renault Automotive Company (DRAC) will be owned 50/50 by Renault and Dongfeng. It has already received approval from China’s National Development Commission.

The joint venture is already planning on doubling the planned factory’s capacity soon after completion. It will build a new range of Renault-branded crossovers, and later it will add new cars under a new, local brand.

Renault already sold a limited number of cars in China, but these will be its first vehicles built there. It considers China is largest potential growth market in the world.

In addition to the new factory, Renault will grow its Chinese dealer network from 92 currently to 120 dealers in 2016.

So far this year, Renault has sold around 30,000 KoleosRenault KoleosFrance, 2008 > present27 versions
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and FluenceRenault FluenceFrance, 2009 > present25 versions
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models in China.