Start of production in the automotive industry

Start of production in the automotive industry

Volkswagen manufacturing plants Wolfsburg, Emden and Hanover should start operating on 04/27/2020. The work will take only one shift, with a safety gap of 1.5 meters between workers and regular disinfection. Where distance is not possible, workers will be able to wear protective equipment, while internal canteens in these facilities will remain closed. Working in one shift, VW will serve as a test of how many cars can be produced under limited conditions.


Volkswagen will also start production in the US and Bratislava, and Audi will open production in Germany at the end of April.


Renault Group is 14.4. started a new strategy for the Chinese market based on two pillars: electric vehicles and light commercial vehicles.

It will share its interests in Dongfeng Renault Automotive Company Ltd (DRAC) at Dongfeng Motor Corporation. DRAC will suspend its Renault brand activities and the Renault Group expects to be successful in these segments and remain in the Chinese market for the long term and maximize its partnership with Nissan. Renault and Dongfeng will continue to work with Nissan on next-generation engines, such as the delivery of DRAC components and diesel licenses at Dongfeng Automobile Co .. Ltd. Renault and Dongfeng will also seek innovative cooperation in the field of intelligent vehicles


Commercial Vehicle Easy Business Will Be Run Through Renault Brilliance Jinbei Automotive Co. LMT. The electric vehicle business will be developed through existing joint ventures, eGT New Energy Automotive Co., Ltd (eGT) and Jiangxi Jiangling Group Electric Vehicle Co. Ltd. (JMEV).

The Renault Group points out why it decided on these two segments. As the market for light commercial vehicles in China grows due to increasing rates of urbanization, e-commerce expansion and urban transport programs. China is also the largest electric vehicle sales market in the world (860,000), with sales increasing. The Renault Group is the market leader in light commercial vehicles in Europe in terms of sales and in the segment of electric light commercial vehicles, and since 2011 has sold a total of 270,000 electric vehicles globally.


Renault is estimated to have strong competitive advantages in China in this segment, as evidenced by the successful launch of the Renault City K-ZE, an electric vehicle competing in the segment with the best local automakers.

Comment: After four years of opening a factory in Wuhan, the Renault Group, which is also facing a difficult financial situation, left the joint venture with Dongfeng, and before the outbreak of the virus corona, when they had to close the factory, business results were well below expectations (sales in 2019 it decreased by 63%). The new strategy focuses on the electric and light commercial vehicle segments in the expectation that it will be successful there and will be able to remain in the Chinese market for the long term and maximize its partnership with Nissan. Initial sales of the Renault City K-ZE electric model are low so far, justified by the lack of brand awareness on the market, and it is anticipated that the model will be launched in Europe in early 2021.