Renault exits Wuhan car venture as months of lockdown to contain coronavirus puts it beyond any hope of catching up in China
- Renault will transfer its share in a joint-venture with Dongfeng Motor to its Chinese partner, without disclosing the price
- The French carmaker will refocus on making light commercial vehicles and electric vehicles in China
Renault has decided to bow out of making cars in the world’s largest vehicle market, as a three-month shutdown of its Wuhan assembly in the former coronavirus epicentre pushed the French carmaker beyond any hope of catching up with competitors in China.
Renault will transfer the 50 per cent stake in its venture with Dongfeng Motor Group to its Chinese partner, according to a statement to the Hong Kong stock exchange, where Dongfeng’s shares are traded.
The French carmaker, based in Boulogne-Billancourt in western Paris, will focus on producing light commercial vehicles at its Jinbei venture with China Brilliance Automotive in Shenyang, and electric vehicles such as the Renault City K-ZE sports-utility vehicle, it said.
“Given the downturn in the domestic market and Dongfeng Renault’s operation, shareholders intend to restructure Dongfeng Renault,” Dongfeng said. “The company intends to implement business transformation and upgrading with Dongfeng Renault,” it said, adding that the unit will stop engaging in business activities related to the Renault brand.
Infographics: Global carmakers and their venture partners in China
