Recently, China Dongfeng Motor Group Co., Ltd. (Dongfeng Group) and Renault of France (Reno) signed a joint venture contract in Wuhan. The two sides will invest 7.76 billion yuan to build Dongfeng Renault Automobile Co., Ltd., which plans to produce 300,000 units of vehicles a year. the company.
People in the industry believe that the establishment of Dongfeng Renault marks the beginning of the full cooperation between Dongfeng Group and Renault-Nissan Alliance. Based on the scale and successful experience of the 10-year Dongfeng Nissan joint venture project, Dongfeng Renault will rapidly build its capacity in R&D, procurement, manufacturing, sales and service on the entire value chain through cross-brand resource sharing and synergy. And the competitive advantage that comes later in cost.
The closure of the Dongfeng-Renault-Nissan “Golden Triangle†partnership will play a positive role in the two joint ventures and cooperation projects of Dongfeng Renault and Dongfeng Nissan. Through synergies to enhance efficiency and cost capabilities, market attributes are strengthened through competition, and customer needs in different market segments are met through product and service differentiation. Dongfeng Renault and Dongfeng Nissan will jointly seek success under optimized resource conditions and healthy competition, and will promote the development of the three-way parent company of Dongfeng, Renault and Nissan.
Under the background of the continuous integration of the global automotive industry, the “Golden Triangleâ€, a cross-brand regional model jointly created by Dongfeng Group and Renault-Nissan Alliance, provides the industry with an efficient and cost-optimized effective path to promote the global automotive industry strategic landscape. The evolution will have positive significance.
According to the contract, the proportion of investment by both parties is 50%. Dongfeng Renault headquarters will be located in Wuhan. Its production and R&D base will be located in the Golden Port Industrial Park in Wuhan Economic and Technological Development Zone, covering an area of ​​95 hectares. Dongfeng Renault plans production capacity based on the annual production capacity of 300,000 units, and the first phase will achieve an annual output of 150,000 units and 150,000 units of engine capacity. The joint venture company's products will be launched in the first half of 2016. In terms of product planning, Dongfeng Renault will first adopt domestic production, launch a series of new Renault automotive products with SUV products as its precursor, and actively promote the development, production and sales of new energy automotive products and Dongfeng brand joint venture auto products. Dongfeng Renault’s board of directors consists of eight members, of which Dongfeng Group appoints four, Renault appoints four, the first term Dongfeng Group appoints the chairman, and Renault appoints a general manager, four years of rotation.
Renault was founded in 1898 and employs nearly 128,000 people. In 2012, Renault achieved sales of 2.5 million vehicles in 128 countries worldwide. As early as 1993, Renault Automobile had signed a joint venture agreement with China Sanjiang Space Group to assemble and produce light commercial vehicle Tafik in Xiaogan City, Hubei Province. However, the project failed to operate and the company suffered a series of losses. In 2012, Dongfeng Group and China Sanjiang Aerospace Industry Corporation signed an equity transfer agreement, Dongfeng Group acquired China Sanjiang Aerospace Industry Group Corporation and held the entire equity held in Sanjiang Renault Automobile Co., Ltd.; subsequently, Dongfeng Group and Renault signed a new joint venture Operating contract, the formation of a new joint venture company --- Dongfeng Renault Automobile Co., Ltd.
Xu Ping, chairman of Dongfeng Group, said that the start of Dongfeng Renault project marked the beginning of the comprehensive cooperation between Dongfeng Group and Renault-Nissan Alliance. It is a creative exploration and practice in the business model under the background of economic globalization. It is Dongfeng Group's acceleration of international cooperation. Important development measures. We look forward to Dongfeng Renault's bringing attractive products and customer experience to the Chinese automotive market. We look forward to the success of Dongfeng Renault.
Renault chairman and chief executive Carlos Ghosn stated that as the parent company of Dongfeng Renault Automobile Co., Ltd., Dongfeng Group and Renault have maintained close cooperation to ensure the success of the joint venture company. Perhaps we will face enormous challenges in the future, but for this we are fully prepared.
Experts pointed out that with the acceleration of the global economic and technological integration process, the strengthening of capital and capacity cooperation among the key companies in the global automotive industry and the improvement of resource utilization efficiency have become new trends. In 1999, Renault and Nissan formed a global alliance to build the third largest automotive group in the world. In 2003, Dongfeng and Nissan entered into a joint venture and established Dongfeng Motor Co., Ltd., the largest automotive joint venture in China. With the good cooperation and experience accumulated between Dongfeng and Nissan, the cooperation between Dongfeng and Renault will come naturally. In 2013, Dongfeng Renault Automobile Co., Ltd. came into being.
Dongfeng Group is a leading company in China's automobile industry. As of the end of 2012, Dongfeng Motor Corporation had total assets of 228.4 billion yuan, 150,000 employees, and sold 3,088,500 automobiles, with an operating income of 389.4 billion yuan. After 44 years of deepening the Chinese market, Dongfeng Group began to actively expand overseas markets. This joint venture with Renault not only can further enrich the Dongfeng Group's product lineage, enhance Dongfeng Group's market competitiveness, but also can further utilize global resources and accelerate the development of Dongfeng Internationalization.
Renault has taken a place in the Chinese imported car market. The establishment of Dongfeng Renault enabled Renault to enter the world's largest automotive market in a new dimension through its localized R&D, procurement, production, sales and service of joint ventures. Renault Asia Pacific President GillesNORMAND said that in 2012, the Asia-Pacific region’s market accounted for 50% of global vehicle sales, but Renault’s sales in the region accounted for only 10% of Renault’s global sales. We must make full use of the size and growth of the Chinese market and other markets in the region to expand Renault’s market share. It is estimated that by 2018, Renault’s global sales will reach 20% in the region.
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