Renault plans to launch SUV cars with Dongfeng
Renault said its plans to start production of SUVs jointly with the Chinese Dongfeng carmaker. Thereby the auto manufacturer aims to start selling cars made in China.
In addition, both automakers plans to work with Nissan to reduce some costs for technologies.
Renault and Dongfeng manufacturers entered into the 1.28 billion dollars agreement. The carmakers hopes the joint plant will produce annually 150,000 cars then Renault plans to increase its capacity.
The French carmaker is going to bring Renault vehicles made in China for sale by 2016. The Renault Company hopes to strengthen its presence in one of the largest car markets in the world. Now there is just three percent of Renault in the passenger cars in the Chinese segment.
The manufacturing in China helps Renault to reduce dependence on the European auto market where two years running the Renault sales are still low.
Besides, selling the China-made vehicles allow saving about 25 percent of the import duty in China, where the auto manufacturer will be able to sell cars at competitive costs.
Now the Renault brand has the right to launch only SUV cars in China but the carmaker plans to produce all passenger cars there in the future.
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