WUHAN, China--French motor-vehicle maker Renault SA (RNO.FR)
will start making cars in China in 2016 with partner Dongfeng Motor
Group Co. (0489.HK), it said on Monday.
It will be Renault's first factory in China.
It will also increase the number of dealers selling the cars in
the country to 120 points.
Dongfeng Renault Automotive Co. will start production in 2016,
the two parties said in a statement.
The agreement is part of a "long term strategy", Renault
Chairman and Chief Executive Carlos Ghosn said on Monday at the
signing of the joint venture. "The challenge is big and we are
ready for it," he said.
Renault expects to sell about 30,000 vehicles in China this
year. Motor-vehicle sales in China last year topped 19 million
vehicles and could exceed 21 million this year, analysts
project.
The 7.8 billion yuan (US$1.3 billion) Renault-Dongfeng 50-50
joint venture received National Development and Reform Commission
approval earlier this month.
Write to Colum Murphy at colum.murphy@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
