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Renault has issued the following press release:
Louis Schweitzer, Renault’s Chairman and CEO, was in Beijing from June 22 to 24, 2004. During his visit, Mr. Schweitzer met with Chinese authorities and Dongfeng Motor Company (DFC) to discuss a project to create a joint automobile manufacturing company between Renault and DFC.
Renault and DFC plan to begin joint production in China in 2006 and are targeting a production rate of 300,000 vehicles a year in two stages, making the most recent Renault models available on the Chinese market.
The first vehicle to be assembled by the joint venture will most likely be the M’gane Sedan. Others should follow, including a version of Logan adapted to the Chinese market. — General Motors' 550 million Euro investment in Spain.
This project would make it possible for Renault to penetrate the high-growth (+64% in 2002, +68% in 2003) Chinese market as of end 2006, thanks to its technological strengths, ambitious plans and the cooperation of a strong Chinese partner. For
Renault, the project is an integral part of its international profitable growth strategy, aimed at producing 4 million vehicles a year by 2010. As for DFC, the joint venture with Renault will help strengthen its position as a major player in the Chinese automotive industry. — GAZ's acquisition of LDV Group.
This project follows up on the agreement already signed between Nissan and DFC for the creation of a joint venture, Dongfeng Motors Company Ltd. (DFL), which will produce 620,000 passenger vehicles and trucks as of 2007.
The new joint venture between Renault and DFC will expand on the already existing cooperation between DFC and the Renault-Nissan Alliance and will enhance its competitiveness through the sharing with DFL of resources in R&D;, powertrains, supplier resources, etc. — Chinese automakers' European production strategies.
The project proposal will be completed according to the requirements set down by new Chinese automotive policy, and will be submitted to the Chinese central government.
