Dongfeng Agrees to Joint Venture With Renault

Renault SA confirms it has signed a memorandum of understanding with Dongfeng Motor Group Co. to form a joint venture in China with capacity to produce 200,000-300,000 vehicles per year.

Renault says the partners aim to finalize the agreement later this year and begin production between 2013 and 2016. Reuters reported the deal earlier this month.

Renault would be one of the last major automakers to build an assembly plant in China. The company sold imported 24,100 vehicles there last year. Renault says it plans to double its Chinese dealer network to 160 outlets over the next two years.

Dongfeng already makes SUVs in China at a joint venture with Renault's alliance partner Nissan Motor Co.