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Dongfeng, Renault Clear Hurdle for Wuhan Plant
China's Ministry of the Environment has approved a request from Renault SA and Dongfeng Motor Group Co. to build a joint venture assembly plant in Wuhan.
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China's Ministry of the Environment has approved a request from Renault SA and Dongfeng Motor Group Co. to build a joint venture assembly plant in Wuhan.
The 7.2 billion-yuan ($1.2 billion) project still requires the approval of the country's Ministry of Industry and Information Technology and the powerful National Development and Reform Commission.
After years of talks, the two companies signed a memorandum of understanding for the venture in April 2012. Renault is one of the last major global automakers without an assembly facility in China.
The partners aim to initially produce 150,000 passenger vehicles and an equal number of engines annually. Analysts expect the venture to begin by making Renault's Koleos compact crossover vehicle.
Dongfeng already makes SUVs in China with Renault's alliance partner Nissan Motor Co.
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