Renault to produce cars in China with Dongfeng

China Economic Review - French automaker Renault (RNO.EPA) and China's Dongfeng Motor Group (0489.HKG) have signed a framework agreement on a joint venture to produce cars in the world's biggest auto market, Reuters reported, citing sources familiar with the matter.The preliminary plan laid the foundations for negotiations aimed at creating a full joint-venture by the end of 2012, pending government approval, sources said. Boulogne Billancourt-based Renault and Dongfeng signed an outline deal last month to jointly manufacture vehicles including an electric car and a SUV in China, said one of the sources. Renault will set up a factory in Wuhan, where Dongfeng is headquarterd, the Chinese press reported. Carlos Ghosn, president of Renault and Nissan, said the company is preparing a "major industrial investment" in China and plans to begin co-producing vehicles with Dongfeng in 2014-2016. Renault lags behind its main rivals in China, where Volkswagen (VOW3.ETR) is the dominant foreign brand.