Renault 'links up with Chinese carmaker'

11th May 2004, Comments 0 comments

SHANGHAI, May 11 (AFP) - French carmaker Renault SA has signed a deal with China's third-largest automaker, Dongfeng Motor Corp, in the latest joint venture on the Chinese mainland, state press reported Tuesday.

SHANGHAI, May 11 (AFP) - French carmaker Renault SA has signed a deal with China's third-largest automaker, Dongfeng Motor Corp, in the latest joint venture on the Chinese mainland, state press reported Tuesday.

The 50-50 joint venture to be established in the southern city of Shenzhen is expected to have an annual capacity of 300,000 vehicles, the state-run China Daily reported, citing unidentified sources.

If finalised, it would pave the way for Renault's first direct joint venture in China, where it has been slow to enter the market compared to other major global manufacturers such as Volkswagen, Ford and General Motors.

A spokeswoman for Renault refused to comment on the newspaper report, adding only that group president Louis Schweitzer would reveal company plans this summer.

"We do not have any comment to make," said the spokeswoman, Helene Ling.

The newspaper did not provide financial details and officials at Dongfeng claimed not to know about the agreement.

"We don't know where this story is coming from," said Chen Yun, head of
Dongfeng Motors communications.

A final accord would make it Dongfeng's fifth foreign tie-up and the second foreign-funded venture in less than five months after it secured a cooperation agreement with Sweden's AB Volvo unit Renault Trucks in January.

©AFP

Subject: French news

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