SHANGHAI--Renault SA (RNO.FR) is planning to launch a 7.2
billion yuan ($1.2 billion) car-making joint venture with Dongfeng
Motor Group Co. (0489.HK), as the French auto maker looks to boost
its sales in the world's largest auto market.
The planned joint venture will have an annual production
capacity of 150,000 passenger vehicles, including sports utility
vehicles and multi-purpose vehicles, according to a recent
statement posted on the website of the Hubei Environmental
Protection Bureau.
The bureau, which is assessing the facility's environmental
impact, said the joint venture will be located in Wuhan, capital of
central Hubei province. Dongfeng Motor is based in Hubei, as are
its joint ventures with PSA Peugeot Citroen SA and Honda Motor
Co.
Dongfeng Motor is China's second-largest car maker by production
and sales after Shanghai-based SAIC Motor Corp. It also makes cars
with Nissan Motor Co. and Kia Motors Corp.
The China Business News on Monday cited a Wuhan government
official as saying Dongfeng Motor and Renault are scheduled to
break ground on the joint venture in May.
Officials at Dongfeng Motor and Renault weren't available for
comment.
Renault is among the few global car manufacturers that don't
have a production facility in China.
The company sold 29,724 vehicles in China last year, up 22% from
a year earlier. In contrast, PSA Peugeot Citroen sold more than
440,000 units in the country last year, while General Motors Co.,
the largest foreign car maker in China, sold 2.84 million vehicles
to Chinese customers.
Nissan Motor Co., with which Renault has an alliance, has had a
partnership with Dongfeng Motor since 2002, and is the biggest
Asian car maker in China by sales.
Write to Rose Yu at rose.yu@dowjones.com
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