Renault and Dongfeng establish a framework for collaboration

The French brand has just taken an important step forward in its manufacturing plans in China. According to the Reuters agency, Renault has signed a cooperation agreement with Dongfeng Motor Group that will allow them to create a new joint venture. Dongfeng is the second most important manufacturer in the Asian country and already has an alliance with Nissan, Dongfeng Motor Company, as well as other foreign firms such as PSA.

Reuters states that the agreement between the two manufacturers was made official at the end of March, but only now have its details come to light. For example, that Renault intends to produce an SUV together with Dongfeng, and an electric model. Since the Koleos already has its manufacturing set in South Korea, this would be an alternative product, like the future compact crossover based on the Captur. The electric model is a mystery, although knowing the insistence of Ghosn on his Renault-Nissan alliance program, any surprise can be expected.

For now, the executives of both parties to the union are going to facilitate negotiations on the framework for collaboration. The idea is that by the end of 2012 they will have clearly defined what the joint venture will look like, which cannot become reality until the Chinese Government gives its approval. According to statements by Carlos Ghosn last week to Automotive News, Renault should begin manufacturing in China between 2014 and 2016.

What is certain is that Renault is increasingly in a hurry to make progress in China, as it has accumulated perhaps too much sales gap compared with its competitors. For now it has eighty dealerships there, which last year managed to register just 24,000 imported vehicles, mostly Koleos. The brand wants to continue expanding its Chinese sales network and broaden its range, with products such as the upcoming Talisman, which they will present at the Beijing Motor Show this month.

Via | Automotive News