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According to the information publicized on the website of the Hubei Provincial Environmental Protection Agency, the joint venture plant of Dongfeng Group and Renault Automobile is expected to be completed and put into operation in 2015. In the past, Xiaogan Sanjiang Renault, which was jointly established by Sanjiang Group and Renault, will become the main production base of Dongfeng Renault's engine, gearbox and accessories. "Yes, many of the original Sanjiang Renault employees will return. After they stopped production in 2004, they went to Sanjiang Valley." On January 28th, the reporter got this exact message from Sanjiang Group, Xiaogan City. Previously, the news about Renault and Dongfeng "backdoor" Sanjiang Renault made a sensation in the entire automotive market. “No accident, then, becoming a supporting business is a win-win result. As for the specific cooperation methods, it can only be disclosed when the agreement comes into force.†A senior from Sanjiang revealed.
On December 31, 1993, Renault Automotive and Sanjiang Aerospace Group spent US$98 million to form a joint venture company, and the two parties share equal shares. In 1995, Sanjiang Renault Xiaogan factory was completed and assembled and produced a commercial vehicle, Tafiq. So far, Tafik has sold only more than 4,000 vehicles in total, which is in stark contrast to the investment of 98 million U.S. dollars. The low proportion of investment returns has obviously failed to support the normal operation of the company. In 2004, Sanjiang Renault announced that it would stop production and sell only accessories.
According to the relevant policies of the national automobile industry, since the Renault-Nissan Alliance had two joint ventures in China (Dongfeng Nissan and Sanjiang Renault), if there is no withdrawal, there will be no joint venture. Therefore, Sanjiang Renault's production qualifications can be said to be whether or not Dongfeng Renault can establish a "growth permit." In 2004, Renault-Nissan CEO Carlos Ghosn declared that Renault will be made in China and will select Dongfeng Group as its only partner.
Finally, Sanjiang, Renault and Dongfeng reached an agreement. With the future Dongfeng Renault automobile joint venture plant to be completed and put into production in Han, Xiaogan Renjiang will become its main parts plant to produce engines, transmissions and other accessories.