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Dongfeng and Renault set up joint venture

(Xinhua)

Updated: 2013-12-16

WUHAN -- Chinese car maker Dongfeng and France's Renault inked an operating deal on Monday for a joint venture to produce multiple-purpose vehicles and engines.

Total investment for Dongfeng Renault Automotive Co Ltd. has reached 7.76 billion yuan (about $1.27 billion), with Dongfeng and Renault each holding a 50-percent share.

It will produce 150,000 finished vehicles and 150,000 engines annually, the company announced at the signing ceremony.

Based in Wuhan City, capital of central China's Hubei province, the company plans to produce a range of new Renault vehicles, with SUVs slated first for production, and will also develop and promote new energy cars and its own brands with Dongfeng.

Four board members from Dongfeng and four from Renault will sit on the company's board of directors. Its CEO will be assigned by Dongfeng and Renault in rotation for a four-year term.

Dongfeng Motor Group gained about 11.2 percent of the country's total sales volume of domestic commercial and passenger vehicles in 2012.

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