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The Dongfeng Renault joint venture, which has been delayed for eight years, is expected to be officially launched in the middle of this year.
Recently, Renault - Nissan Alliance CEO Carlos Ghosn said publicly: "Reynolds in China has entered the final approval stage of the project, will be officially launched this summer, domestic, and in the launch of the project site, while Dongfeng is also the deployment of new joint venture The company's related personnel appointment."
As a latecomer to the Chinese market, Renault-made domestic projects have always attracted the attention of the industry. In the past two years, Renault’s domestic willingness has become even more urgent under the situation that the overall sales volume of the domestic imported car market has been declining. Of course, for a brand that has been marginalized in the Chinese market, Renault’s homegrown challenges have only just begun in the face of increasingly fierce competition and basically bid farewell to the high-growth market environment.
Mountain dew
Not far from the junction of Wuhan Hancai Expressway and the Third Ring Road, Yongfeng Street in the golden mouth of Hanyang was originally a quiet little street. In recent months, a large area of ​​5,000 mu of land has been constructed every day with various large-scale mechanical equipment. Yue Defa, general manager of Goldenport Industrial Park Construction and Investment Co., Ltd., said that in order to “greet†the Dongfeng Renault automobile project, the industrial park is currently working on the field level, of which 3,000 mu is for the vehicle project, and there are more than 2,000 acres. As a component and other supporting industries.
“At present, the Dongfeng Renault joint venture project only waits for the final approval.†The relevant person in charge of the Dongfeng Group recently said in an interview with the reporter that Dongfeng Renault could formally sign the agreement after the approval of the National Development and Reform Commission, the Ministry of Industry and other relevant departments. Startup organization, product planning, channel construction, etc.
According to the environmental assessment issued by the Hubei Provincial Environmental Protection Agency, Dongfeng Renault has a total investment of RMB 7.2 billion. Dongfeng and Renault each hold 50% of the equity, and the initial planned production capacity is 150,000. After the completion, the company will mainly produce SUVs and MPVs. In addition, Renault plans to build a second plant in Wuhan in 2017 to increase its total production capacity to 300,000 units and introduce 600,000 engine projects at the same time.
According to Chen Guozhang, president of Renault China, the four models, including Koreo, landscape, latitude and Fenglang, have all been included in the future domestic planning. In the future, Renault’s network expansion will also be dominated by second- and third-tier cities and concentrated in the western and central regions.
In fact, as early as the end of November 2012, it was reported that the Dongfeng Renault project will be made domestically by the “backdoor†Sanjiang Renault vehicle production qualification. At present, this program has been reported to the National Development and Reform Commission for approval.
Compared with undecided project approvals, Dongfeng Group has issued a series of Dongfeng Reno personnel appointments since December 2012. “Dongfeng Group has already established the Dongfeng Renault project preparatory group. Dongfeng Motor (3.39, -0.02, -0.59%) Hu Xindong, the head of the company's legal and securities affairs department and the head of the capital operation department, is the project team leader. In the future, he will be the chairman of Renault Renault China. The person in charge.†Said Dongfeng Group personnel.
Previously there were rumors that Lei Xin, deputy general manager of the business of Shenlong Co., Ltd., was transferred to Dongfeng headquarters as the deputy head of the strategic planning department. In the future, he will be responsible for the sales of Dongfeng Renault. However, according to the above-mentioned Dongfeng sources, the Leixin did not appear in the Dongfeng Renault preparatory group, but in the future responsible for Dongfeng Renault sales, is likely to be from the CEO of Dalian Zhongsheng Group to return to Dongfeng Group's Chen Hao (before He used to be the Deputy Head of Marketing of Dongfeng Nissan Marketing.
Renault compromise
Compared with the previous "debris", the Dongfeng Renault project now has a more substantial advance.
Previously, the location of home-made bases has been “sawing†in Wuhan and Guangzhou for many years. Since 2004, Renault has expressed its domestic desire. Considering factors such as the sharing platform with Nissan, Renault’s domestically-produced projects had hoped to address the site. All, but Dongfeng has always wanted to leave the Renault project in Wuhan to facilitate its control of the joint venture company. Today, Renault's domestic base has been finalized in Wuhan. It is clear that Renault has chosen compromises to ensure that domestic projects can proceed smoothly.
After the appointment of Dongfeng Renault’s personnel personnel, it was reported that Hu Xindong’s future is not only the Chinese “leader†of Dongfeng Renault, but also the general manager of the new joint venture company. The fact that China is the joint venture company’s number one joint venture has not been seen in Dongfeng Group's joint ventures before. (Dongfeng’s joint venture company, Shenlong’s implementation of rotating positions between Chinese and foreign executives, Dongfeng Nissan, Dongfeng Honda, etc. are all assumed by the foreign general manager. ). At the same time, Chen Hao appeared in the preparatory group for Dongfeng Renault, which also caused Renault’s China CEO Chen Guozhang to be the opposite of the new joint venture company’s responsible sales.
"The appointment of the joint venture company's top executive to the sales manager reflects Dongfeng's strong say in the Dongfeng Renault new joint venture project." Jia Xinguang, a well-known car commentator, believes that Renault's performance in China has been unsatisfactory and it has properly compromised with Dongfeng. It is the foundation for Renault’s domestic production.
Indeed, Renault’s compromise in some respects is also a frustrating move. According to statistics released by Renault, Renault’s global sales fell 6.3% in 2012, and its operating income fell 13.3% in the third quarter of 2012. However, sales in the Chinese market increased by 22.4% year-on-year. Obviously, Renault’s continued dilemma in the global and European auto market demands that Ghosn must seize the life-saving Chinese auto market as soon as possible, and contribute to the Dongfeng Renault joint venture project. This is one of Ghosn’s 2013 most important tasks.
Anterior suspense
With the change of Renault's attitude, the smooth landing of the Dongfeng Renault domestic project is just around the corner. However, due to the fact that there has been no eye-catching performance in the Chinese market, coupled with the current Renault brand in China's market position has become increasingly marginalized, even if the smooth domestic, Dongfeng Renault from the harvest season is still a long period of time.
According to Dongfeng, Dongfeng Nissan will form Dongfeng Nissan, a joint venture company of Dongfeng and Nissan, to implement independent management, independent operations and independent channels. This means that Dongfeng Renault will start production from the approval of the project to the construction of the plant, and Renault’s domestic models will be available after 2015 at the earliest. At the same time, before this, Renault China had no more than 200 dealers in China. Although the first-line market coverage has reached 100%, the coverage in second and third-tier cities is not high, and more than 800 dealers with alliance partners Dongfeng Nissan Compared to the quantity, Dongfeng Renault's distribution network is even more stretched.
From the perspective of the domestic automotive market, the domestic auto market has entered a “micro-growth†period since 2011. The overall growth rate of the market has barely maintained at about 6% for two consecutive years (in 2013, the auto market increased by 36%). ), and according to industry insiders generally predicted that the next few years, the domestic auto market will maintain a slight growth of the development trend. For Dongfeng Renault, this undoubtedly means that the increase in market risk in the subsequent period.
“Before, the first-line automobile market that received certain recognition with Renault imported cars was almost saturated, while Renault’s brand influence in the second and third-tier markets was very small. After being made domestically, relying on the network laying in the second and third tier markets quickly opened up the situation. Dongfeng Renault has become a major test," said Zhong Shi, a well-known commentator in the automotive industry.
However, before the real realization of domestically produced, upgrading the brand is still the question that Renault needs to face. At present, Renault (China) has a total of eight imported models in China, and Sole Koreo occupies 83% of its total sales. Chen Guozhang hopes that this figure can fall below 78% this year, or even lower. To this end, Renault has begun to strengthen the development of its brand of car products.