Renault Halts Passenger Car Sales in China, Transfers JV Stake to Dongfeng
April 14 2020 - 3:59AM
Dow Jones News
By Jessica Sier
Renault SA will stop selling its Renault-brand passenger cars in
China after withdrawing from a joint venture with Dongfeng Motor
Group Co. and will instead focus on light commercial and electric
vehicles, the company said Tuesday.
The French auto maker will transfer its shares in the Dongfeng
Renault Automotive Company to Dongfeng, which will stop Renault
brand-related activities, the company said.
Renault said the change in strategy would focus on its
competitive advantages in order to sustain a long-term presence in
the Chinese market.
"We will concentrate on electric vehicles and light commercial
vehicles, the two main drivers for future clean mobility and more
efficiently leverage our relationship with Nissan," said Francois
Provost, Renault's chairman for the China region.
Renault's light commercial vehicle business in China will still
be operated through Renault Brilliance Jinbei Automotive, while its
electric vehicle business will be developed through existing joint
ventures with eGT New Energy Automotive and Jiangxi Jiangling Group
Electric Vehicle.
Renault will continue to provide aftersales service through
Renault dealers for its 300,000 customers in the country. Renault
will continue to supply components, engines and license diesel to
Dongfeng in cooperation with Nissan.
The change comes as Renault and other auto makers grapple with
the global fallout of the coronavirus pandemic. Last Thursday,
Renault cancelled its 2019 dividend and reduced some executive
compensation to combat the economic damage of the pandemic.
Write to Jessica Sier at jessica.sier@wsj.com
(END) Dow Jones Newswires
April 14, 2020 03:44 ET (07:44 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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