Renault plans China car venture with Dongfeng
BEIJING (REUTERS) - French carmaker Renault SA is planning to launch a joint venture to build cars in China with Dongfeng Motor Group Co, the country's second-largest automaker, a local newspaper reported.
The two firms plan to invest a combined 6.5 billion yuan ($$1.3 billion) in a plant in the central province of Hubei with an initial capacity of 200,000 cars a year, China Business News said on Monday, citing unnamed sources at Dongfeng.
Mr Chen Guozhang, chief executive of Renault Greater China, was quoted by the newspaper as saying the planned JV would operate a plant formerly used by Renault when it had a local partner in the mid-1990s.
A Dongfeng spokesman said he had no information on the joint venture, while a Renault spokeswoman in China declined to comment.