Shanghai - French car manufacturer , Renault , implementing new production tactics . In 2016 , Renault will make and market a versatile sports car ( sports utility vehicle SUV ) in China with a local manufacturer , Dongfeng .
On December 16, 2013 in Wuhan City , Renault and Dongfeng signed a cooperation agreement worth U.S. $ 1.28 billion or Rp 15.4 trillion . The two companies will set up a plant with production capacity of 150 thousand vehicles per year . " Capacity will be doubled in the future , " a statement from Renault's management , as quoted by Autonews .
For Renault , set up a factory in China is very relevant to their plans to cut production in Europe . In his hometown , Renault was forced to cut production by 50 percent due to the economic turmoil . As a result of the crisis that hit Europe , vehicle sales slid . By making factory in China , Renault could cut import duties of raw materials 25 percent . Thus , the selling price will be more competitive Renault cars .
President of Dongfeng , Xu Ping , said that in the future , the plant not only makes SUVs . Dongfeng and Renault will build a passenger vehicle platforms and large scale dealer network .
Renault somewhat lag behind other major manufacturers , such as Toyota , General Motors , and Volkswagen . Therefore , these companies already entrenched in China more than a decade .
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