Renault pours 200 million euros into south Brazil factory
Renault will invest 200 million euros ($266 million) in its plant here, group president Carlos Ghosn said Wednesday, as the French carmaker ramps up its bid to dramatically boost its market share in Brazil.
Renault-Nissan is planning to expand its plant in Curitiba, the country's southern economic hub, and create a new one in Rezende city, in Rio de Janeiro state.
Renault currently operates a factory in Curitiba, the capital of Parana state, where it produces its own line of cars and those of its Japanese partner Nissan.
The factory's annual production, currently at 280,000 vehicles, was expected to rise to some 380,000 units, an expansion which will allow the company to increase its Brazil market share from five to eight percent.
Renault also plans to launch 13 new models in the coming years and double the number of dealerships as it targets Brazil's large and lucrative auto market.
Ghosn said last week that French-Japanese alliance Renault-Nissan plans by 2016 to double its share of the market in Brazil, one of the world's biggest car markets.
According to the ANFAVEA association of Brazilian auto manufacturers, the country of 190 million inhabitants has over 30 million vehicles. Fiat leads the market with a 22.7 percent share of sales, followed by Volkswagen's 22.3 percent and GM with 19.8 percent.
© 2011 AFP