With the government’s announcement, the mystery of the Dongfeng Renault joint venture project was finally unveiled. On December 24th, the reporter learned from a public document of Hubei Provincial Environmental Protection Department that Dongfeng Renault joint venture project has initially been settled in Wuhan Hanyang District. The documents show that the total investment of the joint venture project will reach 7.2 billion yuan and the total production capacity will be 150,000 vehicles. As a result, doubts about Dongfeng Renault's location have also been lifted.
Hanyang Base Formation
On December 19, the website of the Hubei Provincial Environmental Protection Agency released the “Information disclosure of environmental impact assessment of 150,000 passenger cars for Dongfeng Renault Automobile Co., Ltd.â€, in which the first time the long-rumored Dongfeng was clearly communicated. Renault's joint venture project is presented to the public.
The above documents show that the investment scale of the passenger vehicle construction project of Dongfeng Renault Automobile Co., Ltd. is 7.2 billion yuan, and the annual production capacity is 150,000 passenger vehicles, including whole vehicles and engines. The project is located in the gold mouth of Hanyang District, Wuhan City, Hubei Province. . This is different from the previous media coverage. Earlier, media reported that Dongfeng Renault’s overall investment was 6.5 billion yuan, with a total capacity of 200,000 vehicles.
In addition, the document also shows that the project mainly includes the construction of stamping press shop, welding shop, painting shop, assembly shop, resin workshop and engine production workshop, as well as research and development centers and supporting public and auxiliary environmental protection projects. After completion, it will produce SUVs, MPV vehicles and supporting engines. For specific models, there is no announcement at present. However, according to media reports, the first production of SUV models will have Kore proud, and follow-up will also have new energy models.
The joint venture rumors between Dongfeng and Renault started in 2004 and have been delayed for eight years. Earlier, Carlos Tavares, chief operating officer of Renault Motors, hopes that the project will be approved before the end of the year and media reports have recently reported that Dongfeng Motor has submitted an application to the National Development and Reform Commission. However, as of press time, the National Development and Reform Commission website did not disclose the relevant instructions.
Restructuring Sanjiang Renault
With the disclosure of the above documents, the location of the Dongfeng Renault joint venture project is also basically confirmed in Wuhan, which makes the previous speculation about Dongfeng Renault has also had the answer.
Due to the increasingly stringent examination and approval of new production qualifications by the competent national authorities, Renault’s senior officials had previously stated that in order to promote Renault’s domestic production as soon as possible, it is planned to backdoor Sanjiang Renault’s production qualification. Sanjiang Renault is Renault's earliest joint venture in China, located in Xiaogan, Hubei Province and has been discontinued for many years due to poor management.
As a result, there are also two types of Dongfeng Renault settled. One is to carry out in situ production in Xiaogan, and the other is to adopt a restructuring of Sanjiang Renault, but in the way of setting up a new factory in Wuhan. According to the above documents, the Dongfeng Renault project has now settled in Wuhan, which means that Dongfeng Renault is likely to reorganize Sanjiang Renault in the next step.
Since the outbreak of the economic crisis, the European automobile market has been in a sluggish situation, and Renault is also in urgent need of putting into operation in China to improve its performance. After many years of operation, Renault already has a certain foundation in both brand and channel. By the end of this year, the number of Renault dealers will have reached 115, and it is ready to gradually sink sales channels to the second and third tier markets.
On the other hand, Renault China's annual sales in 2011 reached 24,275 units, an increase of 65% year-on-year. In the first 10 months of this year, Renault Automobiles sold a total of 22,400 vehicles in China, a year-on-year increase of 22.6%, which is far higher than the industry average. Now, the only thing missing is the realization of domestic production.
In addition, according to Chen Guozhang, CEO of Renault China, earlier this year, Sanjiang Renault will not disappear after the establishment of the joint venture company. After the establishment of the new plant in Wuhan, it will choose to transform into an engine and transmission exclusive supporting plant for the Dongfeng Renault joint venture.
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