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“Renegotiation between Renault and Dongfeng Liuzhou has made substantial progress.†Liu Xiang, head of Guangxi Liuzhou City, told reporters in an interview with the agency today that the design and development of Renault trucks in Liuzhou are already underway.
Renault's entry shows that the automotive industry in Liuzhou has significantly accelerated its integration with the international automotive industry. Prior to this, GM, Nissan and other world auto giants have successively seized Liuzhou automobile industry.
Liuzhou is located at the crossroads between the eastern part of China and the western part of China. It is a transportation hub for China’s South-Central and Southwestern regions and has a deep foundation for the automotive industry. China's three major automobile groups, including China FAW Group, China Automobile Group and SAIC, have also settled in Liuzhou.
This strategy can serve as an industrial center in the Western China market and the ASEAN market, and it has an unusual appeal to the auto giants at home and abroad. On the first of this month, SAIC-GM-Wuling new engine plant laid the foundation in Liuzhou City. The total investment of this project is 3.2 billion yuan. In 2007, the first phase of the project will be completed and officially started. By that time, the plant will reach an annual production capacity of 300,000 engines. Industry insiders analyzed that the foundation of SAIC-GM-Wuling’s engine plant had a far-reaching impact on Liuzhou’s auto industry and it would enable Liuzhou’s auto industry to form a more complete industrial chain.
“Liuzhou City strives to form an automobile industry cluster focusing on whole vehicles and parts and components, and become a manufacturing base for automobiles and parts based on the Pan-Pearl River Delta economic circle and even ASEAN within ten years,†said Chen Xiangqun. During the “Eleventh Five-Year Plan†period, Liuzhou will invest another 6 billion yuan to form a production capacity of 700,000 vehicles per year by 2010, and strive to achieve an auto sales revenue of 60 billion yuan.
Looking at the development of Liuzhou's auto industry, this vehicle production capacity surpasses the cities of Guangzhou and Tianjin, and its “ambition†is no longer concealed. It already has the strength to seek a larger territory of the Chinese auto industry. Chen Xiangqun said that the Liuzhou auto industry has targeted the vast market in Southeast Asia. With the accelerating development of the China-ASEAN Free Trade Area, the Liuzhou automobile industry ushered in new opportunities for development.