On February 1, 2016, Carlos Ghosn, Chairman and Chief Executive Officer of Groupe Renault, and Zhu Yanfeng, Chairman of Dongfeng Group, opened the Dongfeng Renault Automotive Company (DRAC) plant in Wuhan, Hubei Province.
Just two years after the joint venture was formed, the first DRAC plant in China will start producing the Renault Kadjar, Renault’s latest SUV.
The Renault brand is taking on a new dimension in China with a plant which complies with the highest quality standards for vehicle production and a sales and marketing offensive in the fastest-growing segment.
A GREENFIELD PLANT BUILT IN TWO YEARS
The facility, located in Wuhan, in Hubei Province, is a greenfield plant built in just two years on the strength of a highly-skilled, multicultural team with our partners Dongfeng Group (DFG) and Nissan.
The plant achieved ISO 9001 certification for quality in November 2015 and local content with its suppliers exceeds 80 percent.
The facility includes a vehicle assembly plant, a powertrain plant and an R&D Centre to adapt our products to our customers’ requirements. It will have an initial production capacity of 150,000 vehicles per year which has the potential to be doubled to 300,000 vehicles.
Carlos Ghosn commented during the opening ceremony: “ Thanks to a talented, multicultural team, the Wuhan plant was built in record time to our highest quality standards. This is a milestone in our long-term partnership with Dongfeng Group, as well as for Renault’s growth. China is a core part of Renault’s strategic plan .”
The Dongfeng Renault Automotive Company (DRAC) joint venture was formed on December 16, 2013, and work started on the plant in January 2014. One year later, the joint venture had around 1,000 employees. At end-2015, the workforce totalled 2,000 – a challenge in terms of recruitment and multicultural management.
THE KADJAR TO GO ON SALE IN MARCH
The first vehicle to be manufactured at the plant is the Renault Kadjar, an SUV with racing genes. The car’s dynamic design and high-tech features meet the expectations of our customers in China. The car has been fitted with some different equipment compared to the Kadjar released in Europe in 2015, including a panoramic sunroof, 4Control and independent rear suspension for added comfort.
The SUV segment accounts for 30% of the Chinese market and is the fastest-growing segment, increasing by 53% in 2015.
The Renault Kadjar was unveiled at the 13th Guangzhou Motor Show on November 20, 2015. It will go on sale in China in March 2016.
A DEALER NETWORK FOCUSED ON CUSTOMER SATISFACTION
The Renault network comprises 125 dealerships in all the Chinese provinces. It complies with the Renault brand’s standards for customer satisfaction. In the Initial Quality Study released by JD Power in 2015, Renault was ranked second among mass-market brands in China.