Dongfeng, Renault Agree on China Venture

Renault SA and Dongfeng Motor Group Co. have worked out the framework for a carmaking venture in China that will include SUVs and electric vehicles, according to Reuters.

CEO Carlos Ghosn told reporters at the New York auto show last week that Renault intends to make a big industrial investment in China. The French company has lagged competitors in establishing a partnership in that market.

Unidentified sources tell Reuters that Dongfeng and Renault signed the preliminary agreement at the end of March. The companies have been trying to finalize a deal for months ahead of a shift in China's foreign investment policies that will reduce incentives for foreign investment.

Dongfeng already makes SUVs in China through a venture with Nissan Motor Co., which is 44% owned by Renault. Reuters's source says Renault also could become involved in that partnership.