SHANGHAI--Dongfeng Motor Group Co. (0489.HK) and Renault SA
(RNO.FR) have received approval from China's top economic planner
to start a $1.3 billion car-making joint venture in China, the
Chinese firm said in a statement Thursday.
The two parties will each own 50% in the venture, which is
expected to produce 150,000 multi-purpose vehicles and engines a
year, the statement said. Dongfeng didn't say when production will
start.
Renault is among the few global car manufacturers which don't
have a production facility in China. Last year it sold about 30,000
vehicles in the world's largest car market, where total passenger
vehicle sales reached 15.5 million units.
Dongfeng is China's second-largest car maker by production and
sales after Shanghai-based SAIC Motor Corp. It also counts Nissan
Motor Co. and Honda Motor Co. as partners.
The Renault joint venture will "enhance the overall
competitiveness, brand value and technical strength and
profitability of the company," Dongfeng said in the statement.
Write to Rose Yu at rose.yu@dowjones.com
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