Renault invests 240 million euros in Brazil
PARIS (Reuters) -- Renault will invest 240 million euros ($331 million) to build additional vehicle models and a new logistics centre in Brazil.
The company's Curitiba plant will begin production of two new vehicles at an investment cost of 162 million euros in 2014-19, Renault said in a statement on Thursday.
A further 78 million euros will be spent on a new parts distribution centre to support Renault's sales network in the region
Renault announces new investments in Brazil
Renault Group Chairman and Chief Executive Carlos Ghosn today announced a new investment cycle in Brazil in the amount of R$ 500 million (€162 million) over the 2014-2019 period. This investment will be channeled into the development of two new cars at Renault’s plant in Curitiba.
“Since 2011, Brazil is the brand’s second largest market after France and it is a priority in the Group’s global growth strategy”, says Carlos Ghosn. Renault Brazil successfully completed its previous investment plan and is now pursuing the ambition of expanding its domestic market share”.
Renault has been producing in Brazil for fifteen years now. With a market share of 6.7% at end-March, Renault is reaffirming its position as the fifth largest carmaker in Brazil. The Group is targeting an 8% market share in the country by 2016.
Thanks to its previous investment plan of R$ 1.5 billion (€485 million), Renault strengthened its growth strategy in Brazil based on three pillars:
Production capacity increase from 280 000 to 380 000 annual units at the Curitiba Ayrton Senna industrial complex
Product range update with two brand-new models launched in 2013: Master and New Logan
Dealership network expansion with 100 new stores opened in the last three years, totaling 275 sales outlets.
New national parts distribution center
Renault also announced today the implementation of a new national parts distribution center in the city of Quatro Barras – State of Paraná - with start of operations planned for the second half of 2015. This new distribution center represents an investment of R$ 240 million (€78 million) over the next 10 years and the creation of 250 jobs. Operations would include movement of 200 heavy-duty trucks on a monthly basis.
In addition to meeting the needs of Renault dealerships nationwide, the new distribution center will also supply parts and components to Argentina, Chile, Colombia, Mexico, Paraguay, Peru, Uruguay, Venezuela, Central America, South Africa and FranceContact Automotive News