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Dongfeng Renault formally started

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Staff writer ▼ | December 18, 2013
Carlos Ghosn, chairman and COE of Renault, and Xu Ping, chairman of Dongfeng Motor, signed a contract for the creation of a new joint venture company for localized production in China, Dongfeng Renault Automotive Company (DRAC).
Dongfeng
DongfengCarlos Ghosn, chairman and COE of Renault, and Xu Ping, chairman of Dongfeng Motor, signed a contract for the creation of a new joint venture company for localized production in China, Dongfeng Renault Automotive Company (DRAC).


The final approval by the the National Development and Reform Commission of China (NDRC) was granted on December 2, 2013. The investment for the 50/50 JV totals 7.76 billion CNY (€870 Million).

The Dongfeng-Renault joint venture will establish a new manufacturing plant which will start producing vehicles in 2016. The new plant will have an initial production capacity of 150,000 vehicles per year, with the potential for double that in the near future.

This plant will be located in the capital of the Hubei province, Wuhan. The plant will cover a total area of 95 hectares and will lead to the creation of 2,000 new direct jobs. Each partner will bring unique advantages for win-win cooperation and deep synergies: R&D, innovation, design...

DRAC's product plan will begin with a new range of crossover vehicles under the Renault brand. At a later stage, the new joint venture will introduce a range of products under a local brand. Sales of locally produced vehicles will start in 2016.

The Renault brand has been present in the Chinese market with the imported cars such as Koleos and Fluence. Renault is now swiching gear in China with plans for local production. The Chinese new carmarket, now the world's largest provides a significant new growth opportunity for Renault.

In 2013, Renault imported vehicles sales will exceed 30 000 vehicles in China (wholesales), thanks to the continuous success of Koleos. The Group is developing its network, set to grow from 92 dealers in 2013 to 120 dealers by 2016.


 

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