Renault Revives to be Domestic Dongfeng Renault to Settle in Hubei


After years of hardships, Renault Motors is expected to settle in China next year. It is reported that Dongfeng Renault joint venture project has been submitted to the Development and Reform Commission, and the project investment will reach 6.5 billion yuan. Dongfeng Yulong Deputy General Manager Liu Zhonghou is expected to serve as the general manager of Renault’s joint venture in China.


Renault CEO Carlos Ghosn stated that he is negotiating with Ren Dongfeng Motor Group about Renault’s domestic issues and is optimistic about the joint venture of Dongfeng Renault. Carlos Ghosn originally hoped to approve the joint venture project before the end of the year, but judging from the current situation, it is more likely that the approval will be delayed until next year. With regard to the location of the Dongfeng Renault JV, there are two arguments. At the Guangzhou Auto Show, Chen Guozhang, Executive Director of Renault China, said that Renault Motors plans to use the production qualification of Sanjiang Renault to realize domestic production as soon as possible. Sanjiang Renault is Renault's earliest joint venture in China, located in Xiaogan, Hubei Province and has been discontinued for many years due to poor management. However, news from Dongfeng Motor Group shows that Dongfeng Renault project settled in Wuhan, and the first phase of production capacity will be 200,000 vehicles/year. The first batch of SUV models will be produced Kore proud. Industry insiders pointed out that in view of the increasingly stringent approvals of competent authorities for new production qualifications, Dongfeng Renault may adopt the restructuring of Sanjiang Renault, but it will be conducted in the way of setting up a new factory in Wuhan.


In the face of the sluggish European auto market, Renault urgently needs to put production in China to improve its performance. After many years of accumulation, Renault Motors has entered a period of rapid development in China. Both brand building and sales channel construction have laid a good foundation. The only problem is that it has not yet been made domestically. In 2011, Renault Motors sold 24,000 cars in China; in the first 10 months of this year, Renault Motors sold 22,400 vehicles in China, an increase of 22.6% year-on-year, far higher than the industry average. Renault Motors plans to establish 95 authorized dealer stores and 30 authorized satellite stores in China by the end of 2012, which will sink the network into second and third-tier cities.


In order to build a brand, Renault Automotive has increased its after-sales investment. At the Guangzhou Auto Show, Renault China has launched a "heart certification, new care" car owners caring action - all models of five-year or 120,000 km transmission warranty service.



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