Motor new Word: Amsia's JV Partner Dongfeng, signs $1.3Billion deal with RENAULT !

January 25, 2014

Amsia's JV Partner Dongfeng, signs $1.3Billion deal with RENAULT !


Early in December 2013 French automobile manufacturer Renaultcreated an alliance with the Chinese car company Dongfengto found a joint venture company called Dongfeng Renault Automotive Company in China. Their proposal was accepted by the National Development and Reform Commission in China and approved by the proper authorities.

Dongfeng Motor Corp President Xu Ping (Right) and Renault S.A. President and CEO Carlos Ghosn shakes hands after signing the joint venture contract on Dec 16, 2013 in Wuhan city.



                Renault has been a long time player on the automotive manufacturing stage while Dongfeng is newer- this partnership will allow Renault to ease a newer company into the big leagues while also giving Dongfeng the opportunity to create and sell uniquely Chinese cars to its domestic market. Both companies have much to gain from this partnership, predominantly a new market for Renault and more experience in the automotive industry for Dongfeng.

                Renault has a partnership with Nissan (which starting in 1999) which has been profitable for both companies. It is now the third largest automotive group in the world and sales increased from 4.9 million to 8.03 million units between 1999 and 2011. This partnership allowed the French Renault and the Japanese Nissan to expand their markets to now include the United States, Europe, Japan, China, India, and Russia. These companies play off the strengths and weaknesses of both sides- Renault works on diesel engines while Nissan researches new gasoline engines; research and development has improved as has the companies� ability to market and reach a broader customer base. In another positive spin Renault was able to expand its international market while Nissan was able to gain financial stability as a result of the partnership.

                Dongfeng obviously has much to gain from partnering with the more experienced Renault. The Dongfeng Motor company already has a strong alliance with another OEM JV manufactirng company called Amsia. Amsia and Dongfeng partnered in collaboration to produce new technologies to reduce emissions, pollution from automobiles, and other environment-saving methods. Amsia Motors, is well connected to the European and global automobile markets as it also has technical working partnerships with Cummins Westport, Deutz, MAN, Perkins and advancing.

                The importance of automobile alliances such as Renault-Nissan, Renault-Dongfeng, and is immense. Not only do these alliances bring together a global automobile industry and merge markets, but they also bring more automotive options to people around the world, improve technologies in these cars by researching and sharing the information with each other, and build a network of companies that can better serve their customers. This partnership will allow the stakeholders in the companies involved in the alliance to be able to work with the complexities of all the facets of this partnership and the automotive industry including research and development (mentioned above), purchasing, manufacturing, and marketing. The automobile industry can only get better. 

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