Renault is set to strengthen its links with China, despite the sale of several of its cars being banned there following claimed safety and technical problems.
The French firm has signed a non-binding letter of intent with Chinese manufacturer Great Wall to carry out a feasibility study on building cars together to be sold in Venezuela.
The agreement would result in cars being made under the Dacia name, Renault’s budget brand, and would include both Logan and Sandero models.
Last week, Chinese officials banned the import of Renault Laguna, Scenic, Megane and Megane Coupe-Cabriolet models because they “do not conform to China's mandatory standards and relevant technical regulations, and there are serious safety risks."
However, Renault sources suggest that this move could actually have been a political move in response to the Dalai Lama’s visit to Paris earlier this month.
A final decision on Renault’s partnership with Great Wall is expected to be announced later this year.