FILE PHOTO: The logo of Renault carmaker is pictured at a dealership in Les Sorinieres, near Nantes, France, February 19, 2020. REUTERS/Stephane Mahe/File Photo
PARIS (Reuters) – French carmaker Renault (RENA.PA) said on Tuesday it was selling out of its stake in a Chinese joint venture with Dongfeng Motor Corporation (0489.HK) to Dongfeng, which Renault said would help it maximise synergies with Japanese partner Nissan (7201.T).
Renault has been one of many leading global automotive companies that has been hit hard by the impact of the coronavirus, which has led to factory closures and a slump in demand.
Renault and Dongfeng said they would continue to cooperate with Nissan on new generation engines such as the supply of components to Dongfeng Renault Automotive Company (DRAC) and diesel licences to Dongfeng Automobile Co Ltd.
Renault and Dongfeng will also co-operate in the field of hi-tech ‘intelligent connected’ vehicles, while Dongfeng Renault Automotive Company (DRAC) will stop its Renault-branded activities.
“We are opening a new chapter in China. We will concentrate on electric vehicles and light commercial vehicles, the two main drivers for future clean mobility and more efficiently leverage our relationship with Nissan,” said Francois Provost, chairman of the China region for Renault.
Reporting by Sudip Kar-Gupta; Editing by Raju Gopalakrishnan