Dongfeng, Renault to set up JV
Print Edition
Dongfeng Motor Group has received the all-clear from China’s top economic planner to form a 7.7 billion yuan (US$1.27 billion) equally-owned joint venture with France’s Renault, the Chinese firm said yesterday.
The National Development and Reform Commission has approved the joint venture which will produce passenger cars, with production planned for 150,000 multi-purpose vehicles and engines each year, Dongfeng said. Renault is one of the few foreign carmakers not to have set up a passenger car plant in China.
The new company, registered in Wuhan, Hubei Province, where Dongfeng’s headquarters are located, will be formed from the restructuring of Sanjiang Renault Automotive Co, a commercial vehicle carmaker jointly owned by Renault and China Sanjiang Space Group.
Under the equity transfer agreement, Dongfeng will first acquire 55 percent from Sanjiang in Sanjiang Renault, which will be renamed Dongfeng Renault Automotive Co with a registered capital of US$111.2 million. Renault will continue to hold its 45 percent share. Upon completion of additional capital investment, each party will equally own the venture.
Dongfeng, China’s second-largest domestic carmaker by production and sales, said the partnership is to “enhance the overall competitiveness, brand value and technical strength and profitability of the company.” It also said a research and development center for passenger cars and light commercial vehicles will be set up.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
