PARIS: French carmaker Renault said on Tuesday it was offering out of its stake in a Chinese joint enterprise with Dongfeng Motor Company to Dongfeng, which Renault said would assistance it maximise synergies with Japanese lover Nissan.
Renault has been one of lots of foremost world automotive firms that has been hit hard by the effect of the coronavirus, which has led to manufacturing facility closures and a slump in demand from customers.
Renault and Dongfeng said they would go on to cooperate with Nissan on new generation engines this kind of as the provide of factors to Dongfeng Renault Automotive Company (DRAC) and diesel licences to Dongfeng Car Co Ltd.
Renault and Dongfeng will also co-run in the industry of hi-tech ‘intelligent connected’ automobiles, though Dongfeng Renault Automotive Company (DRAC) will cease its Renault-branded activities.
“We are opening a new chapter in China. We will focus on electric automobiles and light business automobiles, the two primary motorists for long term clear mobility and extra effectively leverage our romantic relationship with Nissan,” said Francois Provost, chairman of the China location for Renault.