Renault takes a decisive step for its implementation in China

Renault has taken a decisive step for its implementation in China, since 2009 became the first global car market with the signing of a Memorandum of Understanding with the Dongfeng group which will produce locally.

The announcement was made Monday by the director of Renault in China, Katsumi Nakamura, at the Beijing auto show. "They signed a memorandum of agreement," he advised.

Renault and Dongfeng now discuss the details of the future implementation of the French and the type of vehicles that may be made, according to Nakamura.

Renault is one of the few major western manufacturers not to produce in China for now. He has indeed left for years the Chinese market with its Japanese partner Nissan, under a division of geographical areas between the two automakers.

Last year, he has passed that 24,000 Koleos 4x4 imported, via 80 outlets, a drop in the 14.5 million passenger cars sold in the country.

Renault to launch at the Beijing Motor Show the premium sedan Talisman, including the name of a concept car introduced a few years ago. This is actually a car manufactured at its South Korean partner Samsung and is rebadgée.

Talisman, made in Korea by Renault Samsung Motors, will be exported to China from mid-June 2012.

"The launch of the flagship model of Renault in China, Talisman, stresses the importance that Renault attaches to the Chinese market and our confidence in the growth in this market," said Group CEO, Carlos Ghosn, President, said in a statement .

Despite the volumes "modest" realizes that the Chinese market, Renault said that its sales will accelerate in the coming years with the network expansion and preparations for a long term project.

"The launch of Talisman will contribute to the acceleration of Renault in China, where the distribution network will increase from 80 claims in 2011 to 170 in 2014," the group said.

He plans to settle in China with a local production between 2014 and 2016, he said, recalling that foreign manufacturers must produce locally to gain a foothold in the country.

The choice was logical partnership with Dongfeng. The Chinese automaker is working with Nissan since 2003 in a joint venture. They have three factories in Guangzhou (Canton), Zhengzhou and Xiangyang. China has also become the largest market for Nissan with a million vehicles produced and sold so many.

The Japanese automaker introduced last summer a huge investment plan of 5.4 billion euros over five years with Dongfeng. The two companies plan to launch 30 new models and wear their sales of 1.3 million units in 2010 to more than 2.3 million vehicles in 2015.

Dongfeng also works with other foreign groups, including French PSA Peugeot Citroen and Japan's Honda through joint ventures.

On the type of vehicles produced with Dongfeng, it is certain that Renault will make electric vehicles, as already stated its CEO Carlos Ghosn, he said. Carlos Ghosn said that Renault should assemble electric vehicles in response to a request from the Chinese government in this direction. He also felt necessary to offer high-end models in the dealer network.

He did not rule out that Renault is implanted in the central city of Wuhan, as mentioned by the Chinese press. The government "does not add capacity (production note) on the coast" which is already focusing the bulk of the automotive business, said the new director of Renault in China.

"Wuhan is not a coastal city, so why not? But no decision has been taken yet," he added.