Renault-Nissan alliance plans to double market share in Brazil

Article by Christian Andrei, on October 7, 2011

As part of an aggressive sales campaign in Brazil (the biggest economy in Latin America), Renault is set on expanding its factory in the country. It will also open a plant with alliance partner Nissan. Renault-Nissan CEO Carlos Ghosn is set to reveal that to expand its coverage of the market in Brazil, it is investing $1.5 billion to construct a new Nissan plant in Rio de Janeiro state.

Ghosn is already in Brazil for the launch of a major production expansion that will hopefully double Renault-Nissan’s share in the vehicle sales in Brazil to 13% by 2016.

Ghosn said that an investment will also be made for Renault’s facility in the southern state of Parana to increase its production capacity to 380,000 vehicles annually by 2013. For now, the plant can build 250,000 vehicles each year. Between 2012 and 2016 is Renault’s aim for the launch of 13 new vehicles in Brazil. It also seeks to increase its number of dealerships to double the current figure from having 186 now.

With these investments, 1,000 jobs will be added to Renault’s 6,000 employees in Brazil, says Autonews. Renault will invest 1 billion reais ($540 million) more in the 2010-2015 product cycle in Brazil to use for the development, industrialization and launch of the new models.

This push in Brazil is part of the strategy of this partnership to increase sales and widen market share in the BRIC countries, which include Brazil, Russia, India and China. Ghosn wants to increase Nissan's share of the Brazilian market from 1.5% today to 5% by 2016. Renault's share is expected to increase to 8% from slightly more than 5% now.

Topics: renault, nissan, brazil

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