On December 5, 2013, Renault and Dongfeng received the National Development and Reform Commission (NDRC) approval for the Dongfeng Renault Automotive Company (DRAC) joint venture.
Renault and Dongfeng Motor welcome the approval from the Chinese authorities for their joint venture. Renault, already present on the imported vehicles market in China, is partnering with a heavyweight of the Chinese automotive industry. This alliance will allow Renault to deploy its ambitious strategy in the world's largest automotive market.
Dongfeng will use this opportunity to further consolidate global resources and achieve rapid development in the automotive market. Renault will use this opportunity to strengthen its scale and depth in the Chinese market and extend its industrial footprint. With the support of both Dongfeng Motor and the Renault-Nissan Alliance, stakeholders of both sides will push forward close cooperation in every sector, notably research and development, purchasing, manufacturing and marketing.
The signing ceremony will take place on December 16, 2013.
The Renault group has been making cars since 1898. Today it is an international multi-brand group, selling more than 2.5 million vehicles in 118 countries in 2012 and employing nearly 128,000 people. To meet the major technological challenges of the future and continue its strategy of profitable growth, the Group is harnessing its international development and the complementary fit of its three brands, Renault, Dacia and Renault Samsung Motors, together with electric vehicles, the Alliance with Nissan, and its partnerships with Avtovaz and Daimler. With 12 world championship titles in 36 years, Renault’s expertise in Formula 1 is equally remarkable, as a vector of innovation, image and awareness.
Dongfeng Motor Corporation (DFM) is a main State Owned Enterprise (SOE) under the direct supervision of the State-Owned Assets Supervision and Administration Commission of State Council. It is one of the three giant carmakers in China. By the end of 2012, DFM’s total assets amounted to RMB 228.4 billion yuan and a staff of 160,000. Dongfeng sold over 3,078,500 vehicles in 2012, achieving sales revenue of RMB 389.4 billion yuan. In 2012, Dongfeng ranked No.146, among the Fortune Global 500, ranked No.18 among the Top 500 Chinese Enterprises, and ranked No.4 among the Top 500 Chinese Manufacturers. Dongfeng has sold 2.82 million vehicles this year (as of end-October 2013), representing an increase of 11.03%, and remains in the No. 2 position in China.
Dongfeng has a strong influence and brand recognition in China's auto industry. It ranks among the top 10 most rapid growth brands in China and among the top 500 world famous brands. During the 12th five-year plan period, Dongfeng will implement the strategic goal of "Be strong, be best; become the strongest in the nation and a world- class car manufacturer." "Be strong, Be best" is Dongfeng's main focus, while "Innovation, Self Development" and "Reform Opening, Increase Cooperation" are two major values. It will further utilize strategic allocation to speed up development of sustainable, high quality operations in order to achieve the 5 million cars goal.