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China Approves Dongfeng-Renault Venture
China top economic agency has approved a 50:50 joint venture between Dongfeng Motor Group Co. and Renault SA, Reuters reports.
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China top economic agency has approved a 50:50 joint venture between Dongfeng Motor Group Co. and Renault SA, Reuters reports.
The 7.8 billion-yuan ($1.3 billion/€937 million) partnership will be called Dongfeng Renault Automotive Co. Ltd. The venture aims to produce 150,000 vehicles and an unspecified number of engines annually.
Previous reports said the partners will make minivans and SUVs at a new factory in Wuhan. Analysts have predicted the venture's first model will be Renault's Koleos compact crossover.
Dongfeng says approval was granted earlier today by China's National Development and Reform Commission. Environmental authorities okayed the plan in June.
The long-awaited deal comes after years of preliminary discussions and a memorandum of understanding signed 20 months ago.
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