Golden TriangleAvoids Infighting, Dongfeng Renault Prefer Cooperation

16 Dec, Xindong HU stayed at gate of Donghu Hotel International Conference Center early. He welcomed senior managers of Dongfeng and Renault, and introduced them to contract signing lounge. The “marriage” between Dongfeng and Renault finally come.

As the top leader of Dongfeng Renault joint venture of Chinese part, Xindong HU practices the situation for many times, but when it comes real, he is still very exciting.

Ping XU, chairman of Dongfeng, and Carlos Ghosnhas a short communication in rest room. It attracts many media reporters. But they are just small talk for a while, because the important issues have been made already.

Both sides watch each other since Dongfeng cooperated with Nissan for 10 years. Both of them know how to deal with the relationship between them. Ping XU and Ghosn talk most about the cooperation among Dongfeng- Renault- Nissan. It is quite difference when Dongfeng signed contract with Nissan 10 years ago.

Dongfeng has realized Finance culture by joint venture with Nissan and PSA. Ghosn research Chinese culture before, and ends his speech with “Chinese Horse Year is coming, with Dongfeng Renault MADAOCHENGGONG”, which means “success immediately upon arrival.”

Dongfeng Group has signed contract with China Sanjiang Space Industry Group Co., LTD in 2012. Dongfeng buy out all share of China Sanjiang Space Industry Group Co., LTD in Sanjiang Renault Auto Co., LTD. Meanwhile, Dongfeng Group sings contract with Renault for new joint venture building and found new company—Dongfeng Renault Auto co., LTD.

However, it does not smooth with national approve procedure. Although tact Ghosn complained about government tactically, but he knows the culture in China, and choose to believe Dongfeng public relationshipmanagement.

Dongfeng changes Sanjiang Renault into Dongfeng Renault, and moves company from Xiaogan to Wuhan. The project needs to be approved by government. Fushou ZHU, Dongfeng general manager explains.

On 2 Dec, Dongfeng Renault received paper of approve. After half month, Dongfeng signed contract with Renault about its Dongfeng Renault Co., Ltd. building up. Both side fund 50% capital for the joint venture.

Dongfeng Renault adopts one time plan, different phrases building, and rolling development mode. The first phrase invests 7.76 billion Yuan. The plant located in Gold Industry Area in Wuhan. At the building up of first phrase, Dongfeng Renault will achieve 150 thousand production capacity, which include stamping, welding, painting, assembly and resin. Engine plant gearswith relative assistant equipment. Meanwhile, the company invests into Dongfeng Renault research center to meet local research demand.