Dongfeng, Renault to set up JV in Guangzhou

Shanghai, November 12 (Gasgoo.com) The long-awaited Dongfeng-Renault joint venture project may break ground soon in southern China. Renault cars will be made in Huadu district of Guangzhou city, at first using Dongfeng-Nissan's facilities, said Carlos Ghosn, Nissan-Renault chief executive, to China Business News yesterday.

"After arriving at Huadu, I talked with the district's government officials. Previously they had reserved a land lot for our Renault project, but this year the land was used for building Dongfeng-Nissan's new plant. Huadu district has promised to look for another vacant lot for us," Ghosn told CBN.

This is the first time since 2005, when Dongfeng-Renault joint venture talks came to a halt, that the Renault CEO has talked about this delayed JV project and even specified the location of Renault's future China venture and production. The CBN report didn't mention when the production will start.

At the early stage, Renault vehicles will be produced at the Huadu facilities of the Dongfeng Nissan venture. An independent factory will be built for Renault car production after the local government has found a new site for the plant, he said.

At its Mexico factory, Renault has produced vehicles of different brands on the same production line, and this can also help cut down the production cost.

In 2004, Renault SA signed an initial deal with Dongfeng Motor Corp, Chinese partner of Nissan, Honda, Peugeot, Citroen, and Kia, to form a joint venture for making and selling Renault sedans in China. Renault's Japanese ally Nissan Motor set up a JV with Dongfeng in 2003.