Car Watch Renault became the last to feast during the feast of Chinese cars. Last week, after a short trip to Beijing, the late chairman of the Renault Group, Louise Shiweize, finally expressed to the outside world the intention of Renault to co-produce the Megane sedan with Dongfeng Motor in 2006. Unlike Dongfeng and Nissan’s joint venture, the Dongfeng Renault made a low profile just to send the media a press release with more than 500 words. The valuable information also includes the following: “The goal is to develop the final production of 300,000 vehicles in two phases,†and to produce “the latest Renault modelsâ€. As for the media concerned about "whether or not to build a factory in Guangzhou" and "how much is the amount of investment" and other issues have not been mentioned. Dongfeng and Renault's low-key is for a reason. The key point is that this project has not passed the approval of the relevant state departments. Logically speaking, since Renault and Nissan are the same automobile group, Dongfeng and Nissan have already established a joint venture—Dongfeng Motor Co., Ltd. Based on this joint venture company, the production of Renault sedan should not be a newly-built automobile project. Easy to get approval from the country. However, because Renault's Sanjiang Renault project in Xiaogan, Hubei Province, was defeated in 1994, there are still many outstanding issues left unsolved. This “dismal†record is likely to become an obstacle to Renault’s approval of new projects in China. Renault’s fear is not unreasonable. In the late 1990s, Renault and Beiqi had almost reached an agreement to produce Renault Scenic Vehicles, but in the end it was because they did not pass national approval. These twists and turns caused Renault to lose momentum in the Chinese auto market. Renault did not even participate in the recent two-time Beijing International Auto Show. Such "indifferentness" is in stark contrast to the enthusiasm of other international auto giants such as Volkswagen, General Motors, and PSA. In fact, for the media, Renault is also the "unfamiliar" major international automotive company. Renault's vision of re-entering the Chinese media is the collaboration between Dongfeng and Nissan in 2002. At that time, it was rumors in the industry that Dongfeng, Nissan, and Renault had to achieve a "three-win" "Golden Triangle Plan", in which Dongfeng cooperated with Nissan to produce cars, while Renault and Dongfeng produced trucks. Later, it was reported that Dongfeng introduced Renault heavy-duty engine technology and Renault Trucks set up a representative office in Beijing. Looking at it now, when the media underestimated Renault’s "ambition" in China, it must do more than just trucks. What it really wants is the opportunity to produce cars. In the French wishful thinking, if the Renault sedan can be put into operation in China, it will share resources such as R&D, parts and components, and suppliers with the current Dongfeng Nissan to reduce costs. Because, in the European Nissan and Renault sedan parts share rate reached 65%. In this way, borrowing the current Dongfeng Nissan channel, Dongfeng Renault can easily come from behind. Another important factor that Renault borrowed from Nissan was Carlos Ghosn. The operating wizard that brought Nissan back from the brink of bankruptcy will take over as CEO of Renault Group in 2005, and Carlos himself is very optimistic about the future of Chinese cars. Therefore, in the future, China will become an important fulcrum for Renault’s global strategy. Beijing Youth Daily Automotive Age
View related topics: Dongfeng Renault project tracking report
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