Dongfeng, Renault Might Finalize Venture This Month

Dongfeng Motor Group Co. and Renault SA expect to complete an agreement later this month to form a long-awaited joint venture, China Business News reports.

The newspaper says the partners intend to begin building vehicles next year at a new plant in Wuhan that will have annual capacity for 150,000 SUVs and minivans.

The companies plan to invest nearly 10 billion yuan ($1.6 billion) in the facility, according to Reuters, which cites unidentified sources. The project was previously expected to cost 7.2 billion yuan ($1.2 billion).

Analysts have predicted the venture will begin by producing Renault's Koleos compact crossover vehicle. The French company said last month that it is considering eventually assembling electric vehicles at the Wuhan factory.

The companies signed a memorandum of understanding for the venture in April 2012 after years of talks. Chinese environmental authorities approved their proposal last month. The venture still awaits clearance from several other government bodies.