Dongfeng Motor, Renault to Restructure JV Due to Downturn in China's Domestic Market

   By Yifan Wang

Dongfeng Motor Group Co. said it has agreed to restructure its joint venture with French car maker Renault SA, due to the downturn in China's car market and the unit's weak operations.

According to the nonbinding agreement, Renault will transfer its 50% stake in the JV, Dongfeng Renault Automobile Co., to Dongfeng Motor, the Chinese company said Tuesday.

After the restructuring, the joint venture, founded in 2013, will cease to engage in any businesses related to the Renault brand.

Dongfeng said it would continue other cooperations, such as new engine and electric car development, with Renault through Nissan, a strategic partner of the French car marker.

In 2019, the joint venture made a pretax loss, and contributed to a mere 0.5% of Dongfeng's total sales, the parent company said.

Write to Yifan Wang at yifan.wang@wsj.com

(END) Dow Jones Newswires

April 14, 2020 01:01 ET (05:01 GMT)

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