Nissan Rogue will be built in South Korea

Article by Christian A., on July 23, 2012

To make the Renault-Nissan alliance more competitive, $160 million will be invested in Renault's South Korean plant to produce 80,000 Nissan Rogue vehicles. By 2014, Nissan will begin to produce and export the crossover to the U.S. Nissan hopes that with this move, it will alleviate the effects of the strong yen, cope with the rise in demand, and take advantage of a South Korea-U.S. free trade deal.

Because of plunging sales experienced by Renault Samsung, the automaker’s South Korean unit, it has had to cut its output in the last few months. The company said that the Busan factory will have a 300,000 capacity and is set to produce around 180,000 vehicles for 2012.

A company statement from Renault-Nissan chief Carlos Ghosn revealed that this development will benefit Renault, Nissan and RSM. This also gives the partners the opportunity to demonstrate their flexibility and power.

Ghosn was scheduled to have a news conference in Seoul on Friday. Exporting from South Korea is appealing because of the lower valuation of the won. The Renault-Nissan alliance could benefit from South Korea's free trade deals with exports from South Korea to the U.S. and Europe.

Hyundai-Kia was able to widen its presence in Europe with the EU free-trade agreement. Last year, the Rogue was No. 2 in U.S. sales. The Altima sedan was the top-seller.

The export plan for South Korea implies that Renault isn’t so hopeful about a short-term sales recovery for the 80%-owned RSM brand, whose domestic lineup is limited and is getting older too. RSM has not so fared so well with the success of Hyundai-Kia. RSM’s domestic market share had declined by over half to less than 5% within 2 years while the combined share of Hyundai and Kia increased by 4 percentage points to 82%.

If you liked the article, share on:

Pin It

Comments

Recommended

Lamborghini has disclosed that it is looking into the possibility of releasing electric vehicles. With the Volkswagen Group revealing that it will be releasing electric vehicles within several years, there...
by - March 25, 2017
Daimler AG, through its Smart division, has disclosed that its two electric models, the Smart ForTwo and the Smart ForFour are now open for orders in Germany. Official market launch...
by - March 25, 2017
Lamborghini has officially offered clear proof that the Huracán Performante was able to set a new record at the Nürburgring Nordschleife with a time of 6:52.01 It was in early...
by - March 25, 2017
Top Gear has revealed that for its “Stars in a Reasonably Fast Car” segment, it will now be using a slightly enhanced Toyota GT86, which in the U.S. market is...
by - March 24, 2017
Porsche is laying aside any plans of pushing another hybrid hypercar into their line-up -- at least not at this time. Oliver Blume, Porsche Global Chief confirmed in a recent...
by - March 24, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries