Renault waiting for government permission to start making cars in China
Published on January 12, 2012 by Tycho de Feyter
Renault, France’s second biggest carmaker wants to enter China this year in a move to boost sales and improve its market share in the booming Asian market, a group’s official said Wednesday.
Speaking to the Economic Affairs Committee of the National Assembly, Carlos Tavares, Renault’s general director expected to sign a cooperation agreement with the Chinese company Dongfeng by the end of this year.
“We are discussing with the Chinese government and the Chinese administration for Renault’s industrial entry in China,” Travers said.
“We hope, in 2012, we will be able to reach a final agreement … which allows us to establish ourselves industrially in China,” he added without giving details on the pledged investment value.
For 2011, Renault reported a record sales at 2.72 million units despite sluggish demand in European markets.
The French group expected to post higher revenues for the whole year of 2011 with the global automotive market was set to grow by 4 percent mainly due to strong demand in emerging markets.
The group maintained its objective of operational free cash flow at more than 500 million euros ($635 million) last year, according to Renault financial figures.