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Report: Renault, Dongfeng Plan €800 Million Factory in China
Renault SA and Dongfeng Motor Group aim to launch a 6.5 billion-yuan (€800 million) assembly plant in Hubei, China, with annual capacity to make 200,000 vehicles, according to China Business News, which cites unidentified Dongfeng sources.
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Renault SA and Dongfeng Motor Group aim to launch a 6.5 billion-yuan (€800 million) assembly plant in Hubei, China, with annual capacity to make 200,000 vehicles, according to China Business News, which cites unidentified Dongfeng sources.
Renault is one of few major carmakers with no assembly plant in China. The company and Dongfeng agreed in April to form a joint venture and begin building vehicles sometime between 2013 and 2016.
Dongfeng currently makes SUVs in China through a joint venture with Renault alliance partner Nissan Motor Co. It also has ventures with Honda and PSA Peugeot Citroen.
Chen Guozhang, CEO of Renault's Chinese unit, tells China Business News the Renault-Dongfeng venture will refurbish a factory used by Renault and another a regional maker of special-purpose vehicles nearly 20 years ago. Doing so, Chen says, will enable the partners to launch production quickly by using the government production license granted to the earlier Renault venture.
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