Renault and Dongfeng form $1.3 billion Chinese Joint Venture

Chinese automaker Dongfeng is strengthening its ties to France by forming a $1.3 billion joint venture with RenaultRenaultFrance, 1898 > present189 models
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. Each side will contribute half of the investment costs. Dongfeng is already partners with PSA PeugeotPeugeotFrance, 1882 > present120 models
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-CitroënCitroënFrance, 1919 > present94 models
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and may buy a significant stake in the company.

Under the deal, Dongfeng will build 150,000 Renault vehicles a year and sell them in China. It will also produce engines for Renault.

Renault has not announced yet which cars it will build in China, but production is scheduled to begin in 2014.

Renault currently sells cars in China but is a very small player in the market. This year it has sold less than 30,000 cars there. 

Source: Automotive News Europe