According to the reporter’s understanding, the Dongfeng Renault project will be approved recently. There are three reasons: Next month, French President Jacques Chirac will visit China and unveil the French Culture Year. The Chinese side is very much looking forward to taking this China-France and China-EU comprehensive strategic partnership. To a new and higher level, the Dongfeng Renault project is likely to be signed in Beijing as a result of President Chirac's visit to China. Secondly, according to Renault's announced strategic development plan, Dongfeng Renault will start production before the end of 2006. According to the construction period, Renault's plant must start construction before April next year, so the project approval and site selection must be implemented recently. Third, because of the hesitantness of Renault's site selection, it has contained too much energy from the main leaders of the four provinces. The local government hopes to make a quick fix. Previously, there have been several different versions of Dongfeng Renault's placement. The first news that Shenzhen will sing Renault to Shenzhen will be high-profile. It is said to have caused dissatisfaction in Guangzhou because Guangzhou is also interested in the project. Renault did not respond. As for the internal news of Dongfeng, the message is: "The marriage certificate hasn't been completed yet. We can't talk about whether the child should go to her parents' house or her husband's family education." According to people familiar with the situation, in the Dongfeng Renault project, the State Council's high-level opinion is that the project won The precondition of the batch is to properly resolve Renault’s legacy in Hubei. Therefore, Wuhan and Renault’s legacy in Hubei, Xiaogan, where Sanjiang Renault is located, have been circulated as possible options for Dongfeng Renault to settle down. Corporate Strategy vs. National Strategy A person close to Renault revealed to reporters that Renault’s location has become more clear. It is not Guangzhou Huadu which is a development zone in Wuhan. The reason why this is still swinging between the two is because of Renault’s There are disagreements with the NDRC responsible for project approval. Reynolds tends to Huadu and its main consideration is the implementation of its common platform strategy. As early as March 1, 2002, Renault raised its 36.8% Nissan shares to 44.4%; Nissan also acquired a 15% stake in Renault Motors on May 28, 2002. Nissan’s incumbent President Ghosn, who is known as the cost killer, will also become president of Renault-Nissan in 2005. His main killer is the sharing platform strategy. The Renault-Nissan Alliance plans to produce 1.5 million vehicles on the platform in 2003 and share more than 65% of the production of auto parts in Europe. By 2010, the two companies will share 8 engines and 7 transmissions. At present, Nissan and Renault have begun to use a common production platform, parts development system and sales network, etc., and more and more synergies have been formed. Dongfeng Nissan has laid a solid foundation in Huadu, Guangzhou, as Dongfeng Motor Co., Ltd., a joint venture between Nissan and Dongfeng, is located in Huadu, and Dongfeng has positioned Huadu as the group’s passenger vehicle base. In May this year, Huadu New Plant, a passenger car company with an investment of 1.8 billion yuan and an annual production capacity of 150,000 vehicles, was formally completed and put into production. The capacity bottleneck problem that constrained the development of Dongfeng passenger vehicles was solved, and Dongfeng Co., Ltd., which invested RMB 330 million in total, was subsequently invested. Passenger vehicle research center also settled in Huadu, Dongfeng passenger car engine production plan has also been officially launched, it is understood that engine products will cover 1.6 liters, 1.8 liters, 2.5 liters, 3.0 liters and 3.5 liters and other series. Huadu is even more of a virtual seat. As early as the Dongfeng Nissan plant area, it left sufficient room for development for the Renault project. Renault believes that if the Renault project is located in Huadu, it will greatly reduce the cost of early entry, and it can also bring synergy between Nissan and Nissan to its fullest extent. However, the informed source revealed that the National Development and Reform Commission does not tend to place Renault projects in South China from the perspective of national regional development strategies. Premier Wen Jiabao clearly stated in this year’s “Government Work Report†that it is necessary to promote the rise of the central region and form a new pattern of interaction between East and West, mutual complementarity, mutual promotion, and common development. The National Development and Reform Commission will also be included in the National Eleventh Five-Year Plan. How to achieve the rise of Central China? In the end, it is still implemented on the project. A project of 5 billion to 6 billion yuan may not be a big deal for South China, but Wuhan in the central region regards it as a development opportunity. Under the new round of macro-control policies, the power shortage in South China caused a drag on the overall economic development and the shortage of migrant workers in some parts of South China are all factors that the NDRC needs to take into account when approving new projects. What's more, the State Council’s main leaders once had instructions that the Renault’s legacy in Hubei should be solved. How to understand this sentence, the National Development and Reform Commission has to weigh it up. For Dongfeng, of course, it is also hoped that the project will fall in Hubei. Dongfeng has experienced 10 years of glory and 10 years of decline in its development. Hubei Province has always supported it tremendously. Especially if there is no debt-to-equity swap in 2000, Dongfeng will not be able to usher in a new situation of full-scale joint ventures. A direct benefit of the Renault project in Wuhan on Dongfeng Company is that it can partly solve the problem of Shi’ao’s industrial workers’ exit and help stabilize the east wind. It is understood that Wuhan is preparing to issue preferential policies on employment placement for this project. Although Miao Miao said that “who ran the project, put the project where to goâ€, but emotionally speaking, the east wind is still biased towards Hubei. Wuhan VS Guangzhou From the perspective of automotive industry clusters, Guangzhou is indeed better than Wuhan, which is one of the reasons why Guangzhou has been relatively high-profile. Starting from Guangzhou Honda in 1998, Guangzhou’s sweeping defeat of Peugeot has gradually become the headquarters of Japanese cars: In 2001, Taiwan’s Yulon Motors, a 25%-owned subsidiary of Nissan, and Dongfeng Motor’s joint venture Aeolus Automobile Co., Ltd. were originally chosen Shenzhen, but later decided to go to Guangzhou Huadu District. In September 2002, Dongfeng Motor and Nissan Motor Co., Ltd. jointly established Dongfeng Passenger Vehicle Co., Ltd., and Aeolus Automobile was also incorporated into the new company. The current annual production capacity of Dongfeng Passenger Vehicle is 150,000, and it will be expanded to 300,000 by 2007. In May 2003, Honda Motor Co., Ltd. further expanded cooperation with Guangzhou Automobile Group and Dongfeng Motor Co., Ltd. to formally start a joint venture car export factory in Guangzhou Export Processing Zone. In February 2004, Honda's annual output of 240,000 capacity expansion projects was officially completed. . In February 2004, a joint venture of Guangzhou Automobile and Toyota Corp. established 500,000 engine plants. In September, Guangzhou Automobile's Honda project was approved. So far, the three most influential Japanese automakers, Honda, Toyota and Nissan have gathered in Guangzhou. By 2005, Guangzhou's auto production will reach 800,000 units, and the automobile manufacturing industry will exceed 100 billion yuan. In the next 10 years, Guangzhou’s auto production capacity will exceed 1 million vehicles, making it one of the largest automotive production bases in China. Although there are three automakers in Wuhan, including Dongfeng Honda, and Dongfeng Honda, as well as 74 auto parts companies, Wuhan's automakers have a relatively low output and a low market share. Most auto parts companies also provide support for Shenlong. The supporting capacity is not strong. In 2003, the total automobile output was only 112,300, and the total industrial output value was 15.6 billion yuan. “Wuhan’s voice is weak, but the development potential of Wuhan should not be overlooked.†An official of Wuhan City Government said in an interview with reporters. He believes that the country's strategy for the rise of central China is bound to give the central region a certain degree of tilt and development opportunities. He believes that large industrial investment should take into account the direction of the country's major policies and policies. Secondly, from the long-term indicators affecting economic development, Wuhan also outperforms Guangzhou: South China lacks electricity and Central China has abundant power resources. Electricity prices are 40% cheaper than in South China; Wuhan is also the export base for high-quality human resources. The education resource is the third in the country; Wuhan has a low logistics cost. Wuhan is at the center of the national economic geography. It is close to the main automobile markets such as East China, North China, and South China. Beijing-Zhuhai-Hurong meets in Wuhan, and the golden waterway in the Yangtze River runs through the city. However, the Wuhan Development Zone is also building 150,000 automobile roll-on terminals and the logistics system is basically complete. At present, Guangzhou’s auto supporting capability is indeed stronger than Wuhan, but there are also many supporting resources of the Renault-Nissan Alliance around Wuhan, such as the commercial vehicles of Shiyan, Tianfan of Xiangfan, and Sanjiang Renault of Xiaogan, in terms of technology, management, and materials. Reynolds also has considerable room for integration. "Furthermore, Guangzhou's industrial facilities are not formed one day. They can engage in a Japanese car's industrial chain. Why can't we engage in an industrial chain of French cars in Wuhan? The official also admitted that Guangdong's leading public relations capability is indeed stronger than that of Hubei. However, he drew the attention of reporters: The State Council leadership has given instructions to handle Sanjiang Renault's problems properly and how to understand implementation. The GAC Toyota project has just been approved. Guangdong has once again launched public relations offensives to various ministries. How big is the odds? (Reporter Xue Weizhong)
View related topics: Dongfeng Renault project tracking report
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