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China: Renault joint venture to depend on Nissan

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China: Renault joint venture to depend on Nissan

According to Jacques Daniel, CEO of Dongfeng Renault Automobiles, the Chinese joint venture of Renault, the company would mostly rely on its alliance partner Nissan.

The French company is aiming to begin manufacturing automobiles in partnership with Dongfeng Motor Group in 2016 and to achieve its goal, the joint venture will ask the aid of the Japanese partner, using the same suppliers as Nissan and also source its local manufacturing staff.

“We will use a lot of people from Nissan’s manufacturing staff in China,” said Daniel. “We will get the design and R&D staff from Europe.”

Renault and Dongfeng just signed 7.76 billion yuan ($1.28 billion) deal back in December, planning an initial production capacity of 150,000 vehicles every year and targeting a 3% market share in China.

The French carmaker, which usually makes around 50% of its global sales in Europe is a latecomer on the Chinese market, the world’s biggest and needs to act fast, lagging locally the likes of Volkswagen, GM or Ford.

The Renault-Dongfeng partnership would initially develop China models under a yet to be announced joint venture new brand in the Guyancourt technical center from France, while also relying on Nissan’s experience with the market – using from dealership to marketing or technology.

Via Automotive News Europe

by Aurel Niculescu (my Google+) - Friday, March 7th, 2014 - filed under Industry, News, Renault. Image credit: .
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