On May 18, the first joint product of Dongfeng Group and Renault Trucks, the Dongfeng Tianlong heavy truck equipped with a Renault engine, will be launched in Shiyan, Hubei. Before its official debut, Levy Chi, Vice Minister of International Cooperation at Renault Trucks, spoke with this reporter from France, sharing insights into the collaboration.
Levy Chi mentioned that negotiations between Renault Trucks and Dongfeng have been ongoing for about five to six years. The launch of the Dongfeng Tianlong, which incorporates Renault’s engine technology transfer, marks one of many collaborative projects. It is considered the first and most significant step in their partnership.
The Dongfeng Tianlong features the DXi 11, an 11-liter high-power Euro III diesel engine, known for its reliability and performance. This engine has already been widely used in Renault’s Kerax engineering trucks and long-haul transport models, offering power outputs of up to 330, 380, and 440 horsepower. It is expected that Renault Trucks will also integrate this engine into the Kerax model produced in collaboration with Dongfeng Liuzhou Automobile.
Levy Chi also revealed that the final agreement on the joint venture plant between Renault Trucks and Dongfeng Fang is expected to be implemented soon. In terms of equity distribution, Dongfeng Liuzhou Automobile will hold 32%, Dongfeng Group 18%, and Renault Trucks 50%. Notably, Renault will convert part of its shares into technology-based equity.
The joint venture will retain both the Dongfeng and Renault brands, allowing each to maintain its identity while benefiting from the other’s strengths. Levy Chi believes this dual-brand strategy will create more growth opportunities for both companies, enabling them to coexist and thrive in the Chinese market.
Although the final agreement hasn’t been signed yet, the sales network is still under discussion. Since Renault Trucks entered the Chinese market later than many competitors, its service infrastructure is limited. Therefore, the company hopes to leverage Dongfeng’s extensive domestic resources and network to enhance its presence.
In 2006, Renault Trucks aims to sell 500 units in China through 13 distributors, with plans to expand to 30 by 2007. By 2010, the company expects total sales—both domestic and imported—to reach 50,000 units, capturing 10% of the heavy truck market.
Whether it’s engine transfers, vehicle exports, or local production, Levy Chi emphasized Renault Trucks’ long-term commitment to the Chinese market. While current technology may seem advanced, he believes that as the Chinese market continues to grow, Renault Trucks will become one of the most suitable options for local customers.
Reporter: Guan Hongye
Related Topics: Dongfeng Renault Project Tracking Report
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