"Dongfeng Renault" project and time race is expected to be approved during the year


Last week, Dongfeng Renault appeared in the environmental assessment project issued by the Ministry of Environmental Protection. If this project can be put into production by 2016, as expected by Renault-Nissan CEO Carlos Ghosn, the entire process will be a hurdle race with time.

Domestic demand is urgent

In 2012, Renault and Dongfeng Motor signed a framework agreement to establish a joint venture in China. According to the EIA report released by the Ministry of Environmental Protection, Dongfeng Renault will build 150,000 passenger vehicle projects in Wuhan, including SUVs, MPV vehicles and supporting engines, with an investment of approximately RMB 7.2 billion. According to this time, if the final approval of the National Development and Reform Commission can be obtained within this year, the production time will be in 2015 or 2016.

Due to the Renault-Nissan alliance, all models will share platforms in the next few years and they will jointly hold intellectual property rights. As a result, Dongfeng Motor and Renault, Nissan’s only joint venture partner in China, resumed strategic cooperation negotiations in 2011.

In fact, from the second half of 2012, the joint venture project between Dongfeng and Renault suddenly accelerated. For the Renault-Nissan alliance, Nissan is tired of Sino-Japanese relations - the Nissan team will not be able to complete the target of 10% of the Chinese market until 2017, which is one year behind schedule.

Renault sold 29,724 vehicles in China last year. Although it increased by 22.4% year-on-year, Renault did not continue to double its growth momentum. In response, Renault China will reduce the price of Kore's accessories and will lower the price of the new Koreo.

A "hurdle run"

Dongfeng Renault's entry into the EIA is only a beginning. According to the established approval procedures, the Dongfeng Renault joint venture project will be finalized and will need to be approved by the Ministry of Industry and Information Technology and the National Development and Reform Commission.

The industry expects that the Dongfeng Renault project will pass the “backdoor” method of Sanjiang Renault and get approval as soon as possible. This news has also been confirmed by Chen Guozhang, president of Renault China. However, the cooperation between Sanjiang Renault and Dongfeng Renault failed to be finalized, which not only led to the postponement of the foundation laying schedule for the Dongfeng Renault joint venture, but also resulted in the final approval of the project.

According to reports, the Dongfeng Renault joint venture agreement not only revitalizes Sanjiang Renault, but also includes joint production of electric vehicles. However, Dongfeng Renault must reach the finish line as quickly as possible in this race against time, and it will also smoothly cross more thresholds.



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