Dongfeng Motor, Renault to Restructure JV Due to Downturn in China's Domestic Market
April 14 2020 - 1:16AM
Dow Jones News
By Yifan Wang
Dongfeng Motor Group Co. said it has agreed to restructure its
joint venture with French car maker Renault SA, due to the downturn
in China's car market and the unit's weak operations.
According to the nonbinding agreement, Renault will transfer its
50% stake in the JV, Dongfeng Renault Automobile Co., to Dongfeng
Motor, the Chinese company said Tuesday.
After the restructuring, the joint venture, founded in 2013,
will cease to engage in any businesses related to the Renault
brand.
Dongfeng said it would continue other cooperations, such as new
engine and electric car development, with Renault through Nissan, a
strategic partner of the French car marker.
In 2019, the joint venture made a pretax loss, and contributed
to a mere 0.5% of Dongfeng's total sales, the parent company
said.
Write to Yifan Wang at yifan.wang@wsj.com
(END) Dow Jones Newswires
April 14, 2020 01:01 ET (05:01 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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