Renault hopes to get going on its foray into China, and to sign a joint venture agreement with Dongfeng, Reuters says. “We are waiting for an official invitation from the Chinese industry ministry,” Reuters heard from an insider. Rumors of an impending JV kept Chinese media guessing and speculating for years.
Total investment is said to be close to 10 billion yuan ($1.6 billion). Renault and Dongfeng are well acquainted: Alliance partner Nissan has a joint venture with Dongfeng, and is China’s largest Japanese brand. The island issue put a damper on sales of Japanese-branded cars in China, which makes a diversification into European brands extra pertinent.
According to the report, the Renault-Dongfeng JV will start with an annual capacity of 150,000 units, and will begin producing SUVs and minivans in 2014.