Dongfeng Renault’s unannounced joint venture company’s right to speak on the eve of the joint venture


In the Goldenport Industrial Park of Wuhan Economic and Technological Development Zone, a new automobile joint venture will soon be born. This lineage of plants from Dongfeng and Renault will be grounded in May this year.

“At present, the project approval of the Dongfeng Renault Joint Venture Company is only the last one.” According to the relevant person in charge of the Dongfeng Group, Dongfeng Renault will officially sign the agreement after the approval of relevant departments such as the National Development and Reform Commission and the Ministry of Industry and Information Technology, and start the establishment of the organization and products. Planning, channel construction and so on.

This means that Renault, the only large-scale international car manufacturer that has not achieved domestic production in China, will eventually hold hands after ten years of love with Dongfeng. However, on the eve of the "new marriage," cooperation between the two sides still has many issues pending.

According to a source inside the Dongfeng Group, Hu Xindong, Minister of the Department of Legal and Securities Affairs of Dongfeng Motor and Head of Capital Operation Department will serve as the head of the Chinese team for the Dongfeng Renault Joint Venture Company. He is appointed as the general manager of the new company. The letter of appointment has been issued within the Dongfeng, but Renault, France There are other arrangements for the appointment of personnel. Renault's idea is that after the new company was formally established, Hu Xindong was the Chinese person in charge, but the position was executive vice president and the president was France.

Obviously, the two sides have not yet reached a consensus on the highest right of the joint venture company.

In addition, the personnel arrangement for sales is always sensitive to joint ventures. At present, sources from the Dongfeng Group stated that the former head of Dongfeng Nissan’s marketing deputy head of marketing, Chen Hao, had already bid farewell to the position of chief operating officer of Dalian Zhongsheng Group, transferred to Dongfeng Renault, and was responsible for sales in the new company. The relevant person in charge of the China Automobile Dealing Association also confirmed this statement.

But at the same time, Renault has its own plans. "In their view, Renault China Executive President Chen Guozhang is the new joint venture company responsible for the sale of a reasonable candidate. Therefore, Chen Hao can ultimately be in charge of sales, it is not easy to say." The above informed sources.

Obviously, there are still too many details about Dongfeng Renault still unclear at the last moment after ten years of “love long-distance running.” The two “newcomers” who are worried about each other have too many places that need to be communicated and run-in.

Infiltrating the night before the joint venture

The Dongfeng Renault joint venture will invest 8 billion to 10 billion yuan in total. The first phase will be in the Wuhan Science and Technology Development Zone, covering an area of ​​about 3,000 acres. It is planned to start construction in May of this year, start production in 2015 and reach 150,000 vehicles and 15 vehicles in 2017. Engine capacity. At present, the joint venture company's factory is carrying out the construction of basic facilities. "The construction period will take about 18 months."

The relevant person in charge of the investment promotion work of the Renault project previously stated that the current Renault project was only approved by the relevant government departments such as the National Development and Reform Commission and the Ministry of Industry and Information Technology. “This project has been greatly promoted and supported by the government, such as Hubei and Wuhan. Victory is hopeful. ”

As for the time when the two sides formally signed the agreement, the official said, "In the recent period of economic and trade negotiations between the Chinese and French governments, the project may be sent out on time."

After the Dongfeng Renault Joint Venture Company is established, it will be located in Dongfeng Limited, a joint venture between Dongfeng and Nissan, and will be level with Dongfeng Nissan. “Dongfeng Renault is an absolutely independent company with independent management, independent operation and independent channels. However, since Renault’s Nissan is a coalition, it will learn from Dongfeng Nissan's previous successful experience in China,” said the above sources.

According to insiders of Dongfeng Group, since December last year, the group has issued a series of personnel appointments. Yang Qing, deputy general manager of Dongfeng Commercial Vehicle Company, succeeded Lu Feng as the general manager of Dongfeng, while Lu Feng took over from Hu Xindong. Hu previously served as Minister of Legal Affairs and Securities Affairs and Director of Capital Operation Department of Dongfeng Motor Corporation. Hu Xindong serves as the general manager of Dongfeng Renault in the capacity of the Chinese leader. "This appointment was issued within Dongfeng within a few weeks ago."

This is also the first time that Renfeng Renault’s personnel arrangement has revealed the tip of the iceberg. However, since the joint venture company has not yet been formally established, the board of directors has not yet been formed. Therefore, in the view of both parties, no appointment of any personnel at the last minute is not a “fail”. According to sources, in Renault's view, the president of the new joint venture company should act for France, and Hu Xindong represents the Chinese side as the executive vice president.

In addition, the senior management in charge of sales has always been a “bigger prince” in the joint venture. Just after the Spring Festival, news came from the automotive circulation field, saying that Chen Sheng, chief operating officer of Dalian Zhongsheng Group, had joined Dongfeng Renault and was responsible for sales. This news has been confirmed by the relevant person in charge of Dongfeng. Chen has already taken office, but has not started negotiations with dealers to discuss the laying of channels.

Prior to Dalian Shengsheng, Chen Hao served as the Deputy Head of Dongfeng Nissan Marketing. According to the relevant person in charge of the China Automobile Dealers Association, Chen Hao has marketing experience on the one hand, and on the other hand, he has had experience in front-line sales for many years in the dealer group. He can not only consider the interests of manufacturers, but also take care of dealers. Demand.

For Dongfeng Renault, copying the successful marketing method of Dongfeng Nissan is one of the quickest ways to open the situation. A person in charge of the Dongfeng Nissan dealer stated that “Dongfeng Nissan started and developed rapidly. The Chinese auto market is in the blowout stage and is the seller’s market. Now that China’s auto market has basically entered the buyer’s market, competition is becoming fiercer. Reynolds has not yet been branded or channeled. Mature, so don't be too harsh on dealers."

At present, Dongfeng Nissan dealers complain that more products than the new ones are forced to be sold by manufacturers. For example, insurance, finance, automotive supplies, etc. are all designated by the manufacturers, and the profitability in these areas is used as an assessment. One of the dealer's performances is "equal to tying the dealers together."

However, everything has not settled yet. According to sources, "In Renault's view, Chen Guozhang has a lot of experience and innovation in the marketing field. Renault's sales in China are not high at present, but the increase rate is very obvious for several consecutive years. Chen Guozhang's capabilities are obvious to all."

Whether it is Dongfeng or Renault occupying a stronger voice in the joint venture company, there will be many issues in the sales field that are worth communicating and working hard. For Renault China's dealers who currently operate Renault imported cars, whether or not they can smoothly carry out on-grid sales of domestic and imported vehicles in the future will also need to wait for the specific policies of the joint venture company.

At present, Renault China does not have more than 200 dealers in China, although the first-line market has reached 100% coverage, but in the second and third-tier cities, the current coverage is not high. Renault’s network is dwarfed by the number of veteran joint ventures in China, such as Volkswagen and General Motors. Even if it compares with Dongfeng Nissan's more than 800 dual-brand stores, it is hard to say that it is huge. Therefore, the laying of channels as soon as possible is the key to Dongfeng Renault.

All the things

Ten years ago, when he was the general manager of Dongfeng, Miao Wei had hoped that while introducing Nissan passenger vehicles and commercial vehicles, Renault passenger vehicles were introduced to realize the so-called “Golden Triangle” of Dongfeng-Nissan-Renault, but Ghosn was out of A positive response to the judgment of the Chinese market was made. Afterwards, it was delayed again because of disagreement on the location of the site.

This time, both sides of the cooperation have made it their goal to be China's largest auto group, while the other hopes to establish the largest joint venture in China's auto market.

For Dongfeng, 2012 is only a prelude to joint ventures and expansion of multiple fronts, and 2013 is the official season for harvesting. In addition to the Dongfeng Renault joint venture project, the Dongfeng Volvo joint venture in the field of commercial vehicles in the heavy truck has basically settled. Dongfeng's acquisition of Fuqi has also been outlined more and more clearly.

Under the background of the overall slowdown in the pace of development of China's auto industry, Dongfeng has become a rare auto group with multi-line expansion through joint ventures and restructuring. Compared with SAIC and FAW, Dongfeng’s space is more spacious.

In the second half of 2012, due to the impact of the overall environment, the sales of Dongfeng Nissan suffered setbacks. As a result, the sales target of 1 million units proposed at the beginning of the year was not reached.

“This has a huge impact on the overall sales volume of Dongfeng's passenger vehicles.” According to the relevant person in charge of Dongfeng, Dongfeng has been hoping to develop new growth poles such as Dongfeng Nissan in its joint ventures. The completion of the Dongfeng Renault joint venture project will not only enable Dongfeng to add a non-Japanese brand joint venture recruit in the field of passenger cars, but also can directly draw on Dongfeng Nissan’s many experiences in China and avoid detours.

In 2013, with the resignation of Dongfeng Group veteran Zhou Wenjie, Shaoxing Zhuang, including Zhu Fushou and Liu Weidong, was committed to continuing the expansion in the joint venture and making achievements. Dongfeng Renault comes into its own.

For Renault, the significance of Dongfeng Renault is somewhat in the limelight. Since 2011, Renault-Nissan Alliance CEO Carlos Ghosn has been eager for the Alliance's sales in the Chinese market. At present, China is already Nissan's largest market. However, Ghosn’s ultimate hope is that Nissan will become the largest Chinese passenger car market in the future.

This obviously requires the joint efforts of Nissan, Renault and Infiniti. Therefore, Ghosn did not hesitate to share with Dongfeng in the field of commercial vehicle joint venture, in exchange for the Renault and Infiniti two brands of domestic passenger cars.

In 2012, Renault's global sales volume fell 6.3%, and operating income fell 13.3% in the third quarter of 2012; of which auto manufacturing fell 14.4%. The continued dilemma of the European auto market demands that Ghosn must seize the Chinese automobile market as soon as possible. The promotion of the Dongfeng Renault joint venture is one of Ghosn’s most important tasks in 2013.

According to previous analysis, Dongfeng and Nissan’s joint venture company Dongfeng Limited will disappear from the institutional setup after the commercial vehicle is removed from the joint venture and cooperation, leaving only Dongfeng Renault and Dongfeng Nissan two passenger car companies. From the current point of view, Dongfeng Limited is still not moving, most of them remain the same, but after Liuzhou Automobile has changed its Dongfeng Volvo project, it has risen by two levels and reports directly to Dongfeng Group.



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