Renault SA Plans Joint Venture in China with Dongfeng Motor Group Co Ltd-Reuters

Reuters reported that Renault SA is planning to launch a joint venture to build cars in China with Dongfeng Motor Group Co Ltd. The two firms plan to invest a combined CNY 6.5 billion (USD 1.0 billion) in a plant in the central province of Hubei with an initial capacity of 200,000 cars a year, according to China Business News. Mr. Chen Guozhang, Chief Executive of Renault Greater China, was quoted by the newspaper as saying the planned joint venture would operate a plant formerly used by Renault when it had a local partner in the mid-1990s. A Dongfeng Motor Group Co Ltd spokesman said he had no information on the joint venture, while a Renault SA spokeswoman in China declined to comment.