TOKYO, - France's Renault SA (RENA.PA: Quote, Profile, Research) will re-enter the Chinese market by resuming production of microbuses in 2010, Automotive News China reported on Wednesday, citing unnamed sources.
The French carmaker will invest 1.5 billion yuan ($215 million) in the minibus project, code-named W72, initially aiming to build 40,000 vehicles a year at an existing factory in Xiaogan, in the eastern province of Hubei, the industry journal said. A Renault spokeswoman declined to comment on the report.
Renault is one of the few global automakers with no presence in China, the world's second-biggest auto market.
Carlos Ghosn, chief executive of both Renault and Japanese partner Nissan Motor Co (7201.T: Quote, Profile, Research), told reporters at the Beijing Auto Show last month that Renault was still assessing the right timing to re-enter the increasingly competitive passenger car market.
Nissan has a local 50-50 joint venture with Dongfeng Motor Corp (0489.HK: Quote, Profile, Research), and Ghosn said Renault would eventually join that partnership.
Renault also plans to sell the new minibus in other emerging markets including Brazil, India and Russia, the report said.
|
