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Renault wants increased China production

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Renault wants increased China production

The French automaker has entered a recent agreement with local joint venture partner Dongfeng Motor, with car production in China slated to begin in 2016. Renault is now already planning how to increase the factory’s capacity.

While the automaker is just building its first Chinese manufacturing facility, according to Chief Financial Officer Dominique Thormann, the planned initial capacity of 150,000 vehicles annually is already proving insufficient. The COO said the company is setting up the strategy to increase local output by as much as four times, to a total of 600,000 units per year.

“The plan is to expand our capacity to potentially reach more than 500,000 or even 600,000 units if we go through appropriate hurdles in the next few years,” Thormann said during a recent conference in Paris.

Dongfeng, which is now closely tied to French rival PSA, already had a great working business relation with Renault’s alliance partner, Nissan, which became in just a decade its most successful partner – with the Japanese always mulling the inclusion of Renault in the deal. Dongfeng and Renault, now in a 50/50 partnership as well, won last year in December the Chinese government’s approval to begin the construction of their first factory, a $1.3 billion joint investment.

Via Automotive News Europe

by Aurel Niculescu (my Google+) - Wednesday, July 9th, 2014 - filed under Industry, News, Renault. Image credit: .
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