Dongfeng and Renault will build a joint venture production base to settle in Guangzhou Huadu

July 09, 2018


On the second day of Changan Automobile's reorganization of AVIC, the Dongfeng Motors-Renault joint venture project that had been delayed for five years finally had news. Yesterday, Nissan and Renault Alliance dual brand CEO Carlos Ghosn told CBN reporters that the Renault project will be settled in Huadu, Guangzhou, and will initially use the Dongfeng Nissan infrastructure for production.

“I went to Huadu, Guangzhou, and communicated with the government officials in Huadu District. Before Huadu District reserved a site for Renault, but this year the site gave Dongfeng Nissan Phase II plant project. Huadu District The promise will find us another piece of land," said Carlos Ghosn.

Since the suspension of the joint venture between Dongfeng Motor and Renault in 2005, this is the first time that Carlos Ghosn has responded positively to the Dongfeng-Renault joint venture project. It has also for the first time identified the address of future production sites.

Carlos Ghosn stated that Renault Motors will use Dongfeng Nissan's infrastructure for production at the same time. At the Mexican plant, Renault Motors already has a precedent for the co-production of different brand models, which can save production costs. Ghosn also stated that Huadu District has already started to provide another site for Renault. In the future Renault will build a separate factory.

Renault and Dongfeng Motor signed a car cooperation agreement as early as 2004. According to the agreement, Renault will establish a joint venture with Dongfeng Motor to realize local production and sales of Renault sedan in China. One year earlier, Renault’s alliance partner Nissan Motors has established a joint venture with Dongfeng Motor.

However, an early Renault car rushed to a late set, because Renault and Dongfeng Motor delayed the agreement on the project address, resulting in the long-term suspension of the joint venture negotiations. “Renault wants to put the production base in Guangzhou, but Dongfeng Motor hopes that the production base will be built in Wuhan,” said an informed source. In an interview in late September this year, a person from the Economic Development Zone Management Committee in Wuhan still told the CBN reporter: “The land for Renault has been kept until it is ready.”

From 2004 to 2008, the annual sales of passenger vehicles in China increased from 5 million vehicles to 9.6 million in 2008, and this year it is likely to exceed 13 million vehicles. Honda, Nissan, Toyota, GM, Volkswagen, Ford, Hyundai-Kia, and BMW, Mercedes-Benz and other global auto giants have set up joint ventures in China to achieve local production and sales, and only Renault has long been in the “absence” of China. status.

In 2008 Renault’s global car sales fell 4.2% year-on-year to 2,381,500. In 2009, Renault’s performance deteriorated further, with global sales falling 16.5% year-on-year in the first half of this year.

After the financial crisis, hot spots in the global auto market have shifted from traditional markets such as Europe, the United States, and Japan to emerging markets such as China and India. However, for a long time, Renault’s automotive business is concentrated in the European region. In other emerging markets such as China and India, Renault is more like a “watcher”. Renault Li, vice president of business for Renault Automotive Asia-Africa Region, told CBN reporter: “Renault will not always be a spectator in this high-growth market.”
View related topics: Dongfeng Renault project tracking report