Renault sells stake in Chinese JV to partner Dongfeng Motor
PARIS (Business) – Carmaker Renault announced its decision to sell out its stake in a Chinese joint venture with Dongfeng Motor Corporation to Dongfeng.
This move, Renault anticipates, would help maximise synergies with partner Nissan.
Renault is one of the leading global automotive companies hit hard by the coronavirus with factory closures and a demand slump.
Renault and Dongfeng would continue to cooperate with Nissan on new-generation engines like component supply to Dongfeng Renault Automotive Company (DRAC) and diesel licences to Dongfeng Automobile Co Ltd.
Renault and Dongfeng will co-operate in the field of hi-tech ‘intelligent connected’ vehicles too, while DRAC will stop its Renault-branded activities.
“We are opening a new chapter in China. We will concentrate on electric vehicles and light commercial vehicles, the two main drivers for future clean mobility and more efficiently leverage our relationship with Nissan.”
– Francois Provost, chairman of the China region for Renault.
(Photos syndicated via Reuters)
This story has been edited by BH staff and is published from a syndicated field.