Friday, 18 April 2014
Major investment by Renault in Brazil
A new investment cycle has been implemented by Renault Group in Brazil worth R$ 500 million (£133 million) over the 2014-2019 period.
This investment will be channelled into the development of two new cars at Renault's plant in Curitiba.
"Since 2011, Brazil has been the brand's second largest market after France and it is a priority in the Group's global growth strategy", according to Carlos Ghosn, Renault Group boss. “Renault Brazil successfully completed its previous investment plan and is now pursuing the ambition of expanding its domestic market share".
Renault has now been producing in Brazil for 15 years and with a market share of 6.7 per cent at the end of March, Renault has reaffirmed its position as the fifth largest carmaker in the country. Renault Group is targeting an eight per cent market share by 2016.
In the light of its previous investment plan of R$ 1.5 billion (£398 million), Renault claims to have strengthened its growth strategy in Brazil based on three counts: Production capacity has increased from 280,000 to 380,000 annual units at the Curitiba Ayrton Senna industrial complex; the product range has been updated with two new models launched in 2013 – the Master and New Logan; and the dealership network has been expanded with 100 new stores opened in the last three years, totalling 275 sales outlets.
Renault is also to implement a new national parts distribution centre in Quatro Barras in the state of Paraná. Operations are planned to start in the second half of 2015.
This new centre accounts for an investment of R$ 240 million (£64 million) over the next 10 years with the creation of 250 jobs. Daily operations would include movement of 120 heavy-duty trucks.
In addition to meeting the needs of Renault dealerships nationwide, the new distribution centre will also supply parts and components to Argentina, Chile, Colombia, Mexico, Paraguay, Peru, Uruguay, Venezuela, Central America, South Africa and France. ∎