Dongfeng Renault Finally Settle Joint Venture Approve

After 10 years waiting, Dongfeng Renault negotiation finally settled. Dongfeng Renault joint venture project signed contract in Wuhan. Ping XU, chairman of Dongfeng Group, Fushou ZHU, president of Dongfeng, Renault CEO Carlos Ghosn and some other seniormanagement of Renault have present. Both of the companies present big heads to show important of the meeting.

Dongfeng Renault joint venture plans to invest 7.76 billion Yuan to produce Renault passenger car in China. It will research its own brand cars and new energy cars as well. Up to now, the top ten international automobile companies invest production base in China all. However, Dongfeng Renault negotiation lasts for 10 years, which started from 2004. It already misses“Gold 10 Years” in Chinese market.

“We can take the enter time from the perspective by China is still a large automobile market based on its huge population. Market still in there, and our project becomes more mature with our cooperation with Dongfeng Group.”Aseniormanager of Dongfeng Renault told reporter that Dongfeng Renault will integrate export car business of Renault and dealers network in China, and will synergy purchasing with Dongfeng.

As reporter known that Dongfeng Renault will reorganize Sanjiang Renault. However, Sanjing Renault only owns MPV and SUV approve by government. Therefore, Dongfeng Renault needs to promise 1 billion Yuan investment in 3 years to get the authority to apply production qualification from government.

Whether it is on purpose or just coincident, Donghu Hotel of Wuhan is also the place that Dongfeng sign contract with Nissan for joint venture building 10 years ago.

In the morning of 16 Dec, Dongfeng Group has signed contract with Renault in Donghu International Conference Center of Wuhan. The two companies will found Dongfeng Renault Auto Co., Ltd based on Sanjiang Renault integration. The entire investment will reach 7.76 billion Yuan, and first phrase production capacity will reach 150 thousandmultifunctionpassengers car and engine plants.

Dongfeng Renault plant is located in Gold Port Industry Area of Wuhan of Hubei Province. It takes around 95 hectare. It already starts construction. According to message from Wuhan Government, besides 7.76 billion Yuan investment mentioned above, Dongfeng Renault will plus capital to total 11.2 billion Yuan. Senior management of Dongfeng Renault told reporter that the purpose of build by stages is because of Sanjiang Renault qualification issues.