Dongfeng Renault opens its first plant in China, will produce Kadjar SUV

Earlier today, Carlos Ghosn, chairman and CEO 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 facility, located in Wuhan, in Hubei Province, is a greenfield plant which achieved ISO 9001 certification for quality in November 2015. Local content with its suppliers exceeds 80 percent.

The facility includes a vehicle assembly plant, a powertrain plant and an R&D Centre. It will have an initial production capacity of 150,000 vehicles per year which has the potential to be doubled to 300,000 vehicles.

Speaking at the opening ceremony, Carlos Ghosn commented: “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.

Kadjar goes on sale in March 
The first vehicle to be manufactured at the plant is the Renault Kadjar, which will be fitted with some different equipment compared to the Kadjar released in Europe in 2015, including a panoramic sunroof, 4Control and independent rear suspension.

The SUV segment accounts for 30 percent of the Chinese market and is the fastest-growing segment, increasing by 53 percent in 2015.

The Kadjar was unveiled at the 13th Guangzhou Motor Show on November 20, 2015. It will go on sale in China in March 2016.

The Renault network comprises 125 dealerships in all the Chinese provinces. In JD Power’s Initial Quality Study 2015, Renault was ranked second among mass-market brands in China.