Renault-Dongfeng alliance in China
18 Dec 2013|2,378 views
The permission for the fruition of the Dongfeng Renault Automotive Company (DRAC) was finally approved by the National Development and Reform Commission of China (NDRC) with a 50/50 joint venture investment amounting to 7.76 billion CNY (S$1.61 billion).
The Dongfeng-Renault joint venture will establish a new manufacturing plant which will start producing vehicles in 2016 with an initial production capacity of 150,000 vehicles annually. The capacity has the potential to expand up to twice the amount in the near future. This plant will be located in the capital of the Hubei province, Wuhan, covering a total area of 95 hectares and will lead to the creation of 2,000 new direct jobs. Each partner will bring unique advantages like R&D, innovation, design, etc.
DRAC’s product plan will begin with a new range of crossover vehicles under the Renault brand. At a later stage, the new joint venture will introduce a range of products under a local brand.
The Renault brand has been present in the Chinese market with imported cars such as the Koleos and Fluence, but is now switching gear in China with plans for local production. The Chinese new car market, now the world's largest, provides a significant new growth opportunity for Renault.
Carlos Ghosn, Chairman and Chief Executive Officer (CEO) of Renault, and Xu Ping, Chairman of Dongfeng Motor, signed a contract for the creation of a new joint venture company for localised production in China.
The permission for the fruition of the Dongfeng Renault Automotive Company (DRAC) was finally approved by the National Development and Reform Commission of China (NDRC) with a 50/50 joint venture investment amounting to 7.76 billion CNY (S$1.61 billion).
The Dongfeng-Renault joint venture will establish a new manufacturing plant which will start producing vehicles in 2016 with an initial production capacity of 150,000 vehicles annually. The capacity has the potential to expand up to twice the amount in the near future. This plant will be located in the capital of the Hubei province, Wuhan, covering a total area of 95 hectares and will lead to the creation of 2,000 new direct jobs. Each partner will bring unique advantages like R&D, innovation, design, etc.
DRAC’s product plan will begin with a new range of crossover vehicles under the Renault brand. At a later stage, the new joint venture will introduce a range of products under a local brand.
The Renault brand has been present in the Chinese market with imported cars such as the Koleos and Fluence, but is now switching gear in China with plans for local production. The Chinese new car market, now the world's largest, provides a significant new growth opportunity for Renault.
The permission for the fruition of the Dongfeng Renault Automotive Company (DRAC) was finally approved by the National Development and Reform Commission of China (NDRC) with a 50/50 joint venture investment amounting to 7.76 billion CNY (S$1.61 billion).
The Dongfeng-Renault joint venture will establish a new manufacturing plant which will start producing vehicles in 2016 with an initial production capacity of 150,000 vehicles annually. The capacity has the potential to expand up to twice the amount in the near future. This plant will be located in the capital of the Hubei province, Wuhan, covering a total area of 95 hectares and will lead to the creation of 2,000 new direct jobs. Each partner will bring unique advantages like R&D, innovation, design, etc.
DRAC’s product plan will begin with a new range of crossover vehicles under the Renault brand. At a later stage, the new joint venture will introduce a range of products under a local brand.
The Renault brand has been present in the Chinese market with imported cars such as the Koleos and Fluence, but is now switching gear in China with plans for local production. The Chinese new car market, now the world's largest, provides a significant new growth opportunity for Renault.
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