Renault Agrees to Joint Venture With Dongfeng

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.

Renault is one the last major automakers without an assembly plant in China. The company sold imported 24,100 vehicles there last year.

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