Carlos Ghosn, group chairman and chief executive of French carmaker Renault SA, has disclosed a BRL500 million (€162 million) investment in Brazil from 2014 to 2019. The amount will be spent to develop two new cars at Renault’s Curitiba site in the country. Carlos Ghosn that Brazil has been the brand’s second largest market after France since 2011, noting that the country is a priority in the Renault’s global growth strategy.
He added that Renault Brazil has already completed its previous investment plan and is moving to expand its local market share. Renault holds 6.7-percent market share in Brazil at end-March, making it the fifth largest carmaker in the country. The Group is targeting to capture an 8-percent market share in Brazil by 2016.
A previous investment plan of BRL1.5 billion (€485 million), has allowed Renault to boost its growth strategy in Brazil based on three pillars. First, the French carmaker was able to boost its production capacity at it Curitiba Ayrton Senna industrial complex from 280,000 to 380,000 units annually. Renault also updated its product range with two new models in 2013, Master and New Logan.
It also managed to expand its dealership network with 100 new stores in the last three years to a new total of 275. Renault recently disclosed the implementation of a new national parts distribution center in Quatro Barras in Paraná, with operations set to commence in the second half of 2015.
The distribution center represents BRL240 million (€78 million) of investments over the next 10 years. Its operations entail movement of 200 heavy-duty trucks monthly. It will supply part and components not only to Renault dealerships in Brazil, but also in Argentina, Chile, Colombia, Mexico, Paraguay, Peru, Uruguay, Venezuela, Central America, South Africa and France. [source: Renault]