Dongfeng Renault: Knowing "Slow" and then "Entering"

In China's auto market, “localization” is a proposition that cannot be bypassed. For Renault Motors, one of the top ten auto companies in the world, it has taken a particularly tortuous path in China’s localization. After experiencing the failure of Sanjiang Renault, on December 16, China Dongfeng Motor Group Co., Ltd. and Renault of France held a signing ceremony for a joint venture contract of Dongfeng Renault Automobile Co., Ltd. in Wuhan. At this point, the Dongfeng-Renault-Nissan “Golden Triangle” alliance formed.

Dongfeng Renault came from reorganizing Sanjiang Renault (a joint venture established by Sanjiang Aerospace Group and Renault Automotive in 1993). From Sanjiang Renault to Dongfeng Renault, Renault’s localization path took 20 years.

"Golden Triangle" Alliance

On the morning of December 16th, over a dozen Renault vehicles were parked on the road in front of Wuhan Donghu International Conference Center. These Renault cars, which are not common on the street, witnessed Dongfeng and Renault’s “hand in hand.” Dong Ping Chairman Xu Ping and Renault Chairman and Chief Executive Officer Carlos Ghoen signed the joint venture contract on behalf of the two companies. According to the contract, the two parties will jointly invest 7.76 billion yuan to form a new joint venture company - Dongfeng Renault Automobile Co., Ltd., and the proportion of investment by both parties accounts for 50%.

In 1999, Renault and Nissan Global Alliance established the world's third largest automotive group. In 2003, Dongfeng and Nissan entered into a joint venture to establish Dongfeng Motor Co., Ltd., the largest automotive joint venture in China. Today, the Dongfeng Renault JV has also been officially contracted. At this point, the Dongfeng-Renault-Nissan "Golden Triangle" alliance was formally formed.

"Dongfeng Renault and Dongfeng Nissan are independent from the legal personality, but internal resources, management, etc. are synergistic. Products have a technical platform and management has a common philosophy. Therefore, although Dongfeng Renault and Dongfeng Nissan are independent markets, There is also competition among the main players, but behind them there is strong support from the strong synergy of Dongfeng-Renault-Nissan. From this point of view, it is the 'Golden Triangle'. Xu Ping said at the signing ceremony.

The future is long

With the signing ceremony, Dongfeng Renault's development plan has also been released. However, in the Chinese auto market that has already bid farewell to the "golden growth era", will Renault, who has been late, realize the good vision expressed in the theme of "Wind Ray Gaining and Creating the Future" in the signing ceremony? Renault made a wish - hoping that the Chinese market can share 20 percent of its global sales in 2018.

In terms of production planning, Dongfeng Renault's production and R&D base is located in the Goldenport Industrial Park of Wuhan Economic and Technological Development Zone. Dongfeng Renault plans production capacity based on the annual production capacity of 300,000 complete vehicles. In the first phase, it achieved 150,000 complete vehicles and 150,000 vehicles. The annual production capacity of the engine.

In product planning, the joint venture company's products will be marketed in the first half of 2016 with SUV products as the precursor. "We also hope to achieve a localization rate of over 85%," said Ghosn. At the same time, Dongfeng Renault will make full use of Renault’s technological advantages in new energy automotive products to develop clean energy models in the Chinese automotive market. At the same time, Dongfeng Renault also promised to develop and produce a joint-venture branded automobile with Dongfeng logo.

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