Renault, which was already struggling in China before the coronavirus epidemic hit, will stop making gas-powered cars for domestic sale and wind up its main joint venture with state-run auto maker Dongfeng Motor, reported The Wall Street Journal.
Dongfeng blamed the joint venture’s lack of success on the downturn in China’s auto market and said a proposed transfer of Renault’s 50% share in the JV to Dongfeng still awaits formal approval.
For Renault, a relative newcomer to China that was struggling with weak sales and tougher competition, the onset of the coronavirus epidemic snuffed out its bid to become a mainstream brand in the world’s biggest auto market.
In the first quarter of 2020, China auto sales fell 43% from a year earlier, after having fallen over the previous two years, as the Chinese car industry faces the toughest period in its history after decades of uninterrupted growth.
Full Content: Wall Street Journal
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