Renault Debuts Talisman in China, Signs JV With Dongfeng
Executive Summary
Details of the pending deal have not been released, but analysts expect the two auto makers to build vehicles together at an existing plant in Wuhan. Products could include electric vehicles.
Renault unveils its upscale Talisman sedan at the Beijing auto show on the same day it announces the signing of a memorandum of understanding to form a vehicle-building joint venture with Dongfeng in China.
The auto makers reportedly are hoping to finalize the deal by year’s end.
Details have not been released, but analysts believe the JV will operate out of Dongfeng’s existing assembly plant in Wuhan, in central China. In February, Renault Chairman and CEO Carlos Ghosn announced the company was planning to manufacture electric cars and other vehicles in the country.
“The launch of Renault’s flagship Talisman in China underlines the importance Renault attaches to the Chinese market and our confidence in growth here.” Ghosn says at the unveiling of the Talisman in Beijing.
Renault China Managing Director Robert Chan says the Talisman is aimed at the new generation of business people who want a car that also fits with their private lives.
“These are very demanding customers,” he says. “They are looking for the best, for excellence and comfort, not only for themselves but to indulge their business relationships and their friends and family.”
The Talisman took more than 32 months to develop, he says, drawing from Renault’s global design team.
“Renault has entered into an unprecedented rapid development stage in China,” Chan adds. “This year, we will increase the number of dealer stores from 80 to 115 and deepen our marketing campaigns in the second-tier and third-tier cities. Consequently, we expect our sales to continue to grow at a swift pace in the years to come.”
Renault wants to further expand its dealer network to 170 showrooms in the next two years.
The auto maker racked up total sales of 28,307 units in China in 2011, up 65% from 2010. It is staying apace in 2012, with 7,064 deliveries in the first quarter. The Renault Koleos accounted for most of the sales in 2011 and so far this year.
Renault’s volume in China has more than quadrupled from the 6,688 units sold in 2009, Chan notes, following the launch of its Total Ownership Experience program that provides three years or 37,000 miles (60,000 km) of free maintenance.
The Talisman will be produced at Renault Samsung’s Busan, Korea, plant, with exports to China set to begin in mid-June.
The Talisman is a Chinese variant of the new SM7 sedan launched in Korea last August. It will sell in China for RMB318,000-RMB484,800 ($50,400-$77,000) a Renault Samsung spokesman says.
The car features a premium interior with leather seats, three separate air-conditioning zones, air purifier, Bose sound system and 8-in. (10-cm) navigation screen.
