French car maker Renault said on Tuesday it was selling out of its stake in a Chinese joint venture with Dongfeng Motor to Dongfeng, which Renault said would help it maximise synergies with Japanese partner Nissan.
Renault has been one of many leading global automotive companies that has been hit hard by the impact of the coronavirus, which has led to factory closures and a slump in demand.
Renault and Dongfeng said they would continue to co-operate with Nissan on new generation engines such as the supply of components to Dongfeng Renault Automotive Company (DRAC) and diesel licences to Dongfeng Automobile.
Renault and Dongfeng will also co-operate in the field of hi-tech "intelligent connected" vehicles, while DRAC will stop its Renault-branded activities.
"We are opening a new chapter in China. 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, chair of the China region for Renault.
Renault sells its stake in Chinese joint venture to partner Dongfeng Motor
Image: Igor Golovniov/SOPA Images/LightRocket via Getty Images
French car maker Renault said on Tuesday it was selling out of its stake in a Chinese joint venture with Dongfeng Motor to Dongfeng, which Renault said would help it maximise synergies with Japanese partner Nissan.
Renault has been one of many leading global automotive companies that has been hit hard by the impact of the coronavirus, which has led to factory closures and a slump in demand.
Renault and Dongfeng said they would continue to co-operate with Nissan on new generation engines such as the supply of components to Dongfeng Renault Automotive Company (DRAC) and diesel licences to Dongfeng Automobile.
Renault and Dongfeng will also co-operate in the field of hi-tech "intelligent connected" vehicles, while DRAC will stop its Renault-branded activities.
"We are opening a new chapter in China. 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, chair of the China region for Renault.
Nissan to pull out of venture fund with Renault in cost-cutting drive
Would you like to comment on this article?
Register (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Trending Now
Latest Videos