Renault shifts to all-electric cars for China

French automaker Renault said Tuesday that it would start building only electric vehicles for China's huge passenger car market, dropping conventional internal combustion engines as well as its joint venture with local manufacturer Dongfeng.

The strategy shift comes after years of sluggish sales in China, where Renault hoped its 50-50 venture with Dongfeng, announced in 2013 and focused on a factory in Wuhan, would allow it to make inroads quickly.

But the coronavirus outbreak in Wuhan forced the factory to shutter, just as Renault was wrestling with slowing growth worldwide and a cashflow squeeze that has prompted ratings agencies to cut its credit ratings to "junk" status.