Are Renault and Dongfeng finally ready to kick start their long anticipated joint venture in China? It may seem that way. Renault and Dongfeng have for a long time been courting each other with a view to entering the Chinese market place, currently all Renault vehicles are imported into China which basically translates into low sales due to high prices and the inability to advertise on a mass scale as they lack the infrastructure in China. Should Renault and Dongfeng enter the Chinese market together, then Renault would see its cars being made in China, at a lower cost, which would give them a price advantage against the local produce.
Renault are reportedly waiting for a ’suitable time’ in which to enter into the joint venture with Dongfeng, the Chinese motoring press are saying there is already a lack of suspense, its only a matter of ‘when‘ now rather than ‘if‘. Dongfeng and Renault joint venture agreements for car building date back to 2004, however since then nothing has come of it.
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