Renault-Nissan Alliance has formed a joint venture with Dongfeng Motor Group to co-develop and sell electric cars in China.
eGT New Energy Automotive Co., Ltd. is the company that has been spawned off the joint venture between the Renault-Nissan Alliance and Dongfeng Motor Group Co., Ltd. With the collaboration, both companies aim to develop, produce and sell electric vehicles in China.
eGT will focus on the core competencies of both partners to deliver the full potential of the Renault-Nissan Alliance electric vehicle expertise while using the resources of Dongfeng in the new energy industry for the Chinese market.
The Alliance and Dongfeng will co-develop an electric vehicle based on the A-Segment SUV platform of the Renault Nissan Alliance. The Alliance will provide their knowledge in cost-effective design and technology, while Dongfeng will offer their proficiency in competitive manufacturing costs.
“The establishment of the new joint venture with Dongfeng confirms our common commitment to develop competitive electric vehicles for the Chinese market,” said Carlos Ghosn, chairman and chief executive officer of the Renault-Nissan Alliance. “We are confident to meet the expectations of the Chinese customers and to strengthen our global electric vehicle leadership position.”
“This project is the result of a joint effort to develop electric vehicles for the Chinese market, by the 'Golden Triangle' formed by Dongfeng, Renault and Nissan, with an innovative business model,” said Zhu Yanfeng, Chairman of Dongfeng. “We expect to meet the transformation trend of the market in China; where cars are becoming light, electric, intelligent, interconnected and shared.”
As a part of the agreement, Nissan and Renault each will hold a 25 per cent of eGT, while Dongfeng will hold the remaining 50 per cent.
The new company eGT is planned to be based out of Shiyan, Hubei Province in central China. The vehicles will be produced at Dongfeng’s Shiyan pant which currently has an annual capacity of 120,000 vehicles. The new electric vehicle is expected to hit production in 2019.