Renault and Dongfeng to quit plan on cooperation

According to a news report, Renault may suspend plans to expand in China after cooperative negotiations on sedan productions with Chinese auto maker Dongfeng for three years, and will focus on India, Asia-Pacific area instead. Chief Thierry Koskas told Agence France-Presse that Renault currently has no production in China and very limited sales, which he estimated at 4,000 units in 2007 against 3,000 in 2006.

Renault Trucks, part of the giant Volvo AB group, has reached an acquisition agreement with Dongfeng Motor Corp and will manufacture heavy trucks in China over the next five years. In 2004, the two also build a long-awaited passenger car joint venture (JV) at the same year.