Renault Halts Passenger Car Sales in China, Transfers JV Stake to Dongfeng

By Jessica Sier

Renault SA will stop selling its Renault-brand passenger cars in China after withdrawing from a joint venture with Dongfeng Motor Group Co. and will instead focus on light commercial and electric vehicles, the company said Tuesday.

The French auto maker will transfer its shares in the Dongfeng Renault Automotive Company to Dongfeng, which will stop Renault brand-related activities, the company said.

Renault said the change in strategy would focus on its competitive advantages in order to sustain a long-term presence in the Chinese market.

"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, Renault's chairman for the China region.

Renault's light commercial vehicle business in China will still be operated through Renault Brilliance Jinbei Automotive, while its electric vehicle business will be developed through existing joint ventures with eGT New Energy Automotive and Jiangxi Jiangling Group Electric Vehicle.

Renault will continue to provide aftersales service through Renault dealers for its 300,000 customers in the country. Renault will continue to supply components, engines and license diesel to Dongfeng in cooperation with Nissan.

The change comes as Renault and other auto makers grapple with the global fallout of the coronavirus pandemic. Last Thursday, Renault cancelled its 2019 dividend and reduced some executive compensation to combat the economic damage of the pandemic.

Write to Jessica Sier at [e-mail]

(END) Dow Jones Newswires

April 14, 2020 03:44 ET (07:44 GMT)

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