皇冠体育app

French carmaker Renault SA is planning to launch a joint venture to build cars in 皇冠体育app with Dongfeng Motor Group Co, the country's second-largest automaker, a local newspaper reported.

The two firms plan to invest a combined 6.5 billion yuan ($1.0 billion) in a plant in the central province of Hubei with an initial capacity of 200,000 cars a year, 皇冠体育app Business News said on Monday, citing unnamed sources at Dongfeng.

Chen Guozhang, chief executive of Renault Greater 皇冠体育app, was quoted by the newspaper as saying the planned JV would operate a plant formerly used by Renault when it had a local partner in the mid-1990s.

The logo of French car manufacturer Renault is seen in Strasbourg eastern France, Oct 25, 2012. [Photo/Agencies]

A Dongfeng spokesman said he had no information on the joint venture, while a Renault spokeswoman in 皇冠体育app declined to comment.

Dongfeng also has car ventures with Nissan Motor Co, Honda Motor Co and PSA Peugeot Co.

All foreign car makers producing vehicles in 皇冠体育app must operate through a joint venture with a local firm. Renault briefly produced cars in 皇冠体育app in the mid-1990s in a tie-up with a little-known State-owned maker of special purpose vehicles.

The French firm is currently one of the few foreign automakers to sell exported cars in 皇冠体育app, but has met with a lackluster response.

Renault's Chen was also quoted as saying the automaker would not need to seek a new production license from the government, as it would able use the one from its previous joint venture.

Dongfeng shares rose more than 6 percent on Monday morning, outperforming a slightly weaker overall market.

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