Nissan-DFM, Renault build JV in Guangzhou
- Source: Global Times
- [16:08 November 12 2009]
- Comments
Nissan-DFM and Renault will build a new joint venture in Huadu, Guangzhou, Guangdong Province. When production starts, Renault will use the basic equipment of Nissan-DFM to manufacture the cars, Carlos Ghosn, CEO of Renault, said Wednesday.
It was the first time Ghosn commented on the project since 2005.
Renault and Nissan-DFM signed a cooperation agreement to produce sedans in 2004. In it, Renault and Nissan-DFM would build a joint venture to produce and sell cars in China. However, they could not decide where to open the factory and so the project was delayed.
Ghosn said Renault will borrow basic equipments of Nissian-DFM to produce cars in the same product line.
Renault's 2008 global sales were 2.38 million units, a drop of 4.2 percent compared with the same period in 2007. Its sales have also decreased in 2009, by 16.5 percent compared with the first half of the year in 2008.
Le Weichi, Renault's vice president of commerce in Asia and Africa.says although the French carmaker is building a factory during the global financial crisis, the global market is moving to China and India. With this move, Renault will be in a good position to capture the potential market.
Agencies and Wang Yang contributed to this story
