Renault-Nissan Alliance agrees electric car partnership with Dongfeng Motor Group
Strategic partners Renault SA and Nissan Motor have announced that they will be partnering up with Dongfeng motor to build a new wave of electric cars in China.
The venture has been named eGT New Energy Automotive Co., with Renault-Nissan aiming to use the expertise from their partnership to create an effective model, whilst utilising Dongfeng’s competitive manufacturing costs.
"The establishment of the new joint venture with Dongfeng confirms our common commitment to develop competitive electric vehicles for the Chinese market," said Chief Executive Officer of the Renault-Nissan Alliance, Carlos Ghosn.
"We are confident to meet the expectations of the Chinese customers and to strengthen our global electric vehicle leadership position."
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The agreement will see Renault and Nissan holding a 25% stake each in the venture, with Dongfeng owning the remaining 50%.
"This project is the result of a joint effort to develop electric vehicles for the Chinese market, by the 'Golden Triangle' formed by Dongfeng, Renault and Nissan, with an innovative business model," said Zhu Yanfeng, Chairman of Dongfeng.
The news comes in the wake of the Chinese government announcing that stricter environmental rules will be set to take effect in major markets in 2018, leading to the acceleration of electric vehicle investment within the country.
"We expect to meet the transformation trend of the market in China; where cars are becoming light, electric, intelligent, interconnected and shared,” Yafeng continued.
“This is also testimony of a deepened and strengthened strategic cooperation between the three parties."
Ford has already made headway in light of this, signing a memorandum of understanding with Anhui Zoyte Automobile Co. with the view of taking advantage of these new rules in the world’s largest auto market.
eGT New Energy Automotive will be based in Shiyan, China, with manufacturing expected to start in 2019. The site is expected to run at a capacity of 120,000 vehicles annually.
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