BRAZIL: Renault-Nissan's Ghosn lured by higher profitability in Russia
This year has been very good for Renault in Brazil, the French brand’s second largest market. Sales grew 25% to almost 250,000 units, 30 new dealers were added (now 235), including updates, six models were launched and there were new engines, too.
Nonetheless, the automaker’s plant will be shut for two months until next February to complete refurbishing work that will raise capacity from 280,000 to 380,000 units a yearly plus 100,000 additional engines. Some 40% of the planned 500,000 capacity will be for export.
Renault-Nissan alliance CEO Carlos Ghosn visited to praised the reaction of the market to the government's IPI tax slash.
“Earlier this year we expected a downturn of up to 4% in industry sales and the final result will be a healthy 5% growth.”
Brazil born and raised Ghosn knows the automaker’s share price and profit is discussed almost like a national sport.
“The profit level here is similar to Europe and Japan in normal times. Of course it is an interesting market, otherwise we would not invest. But among the emerging markets, Russia gives us higher profitability.”
But he complained about production costs. “Brazil exports iron ore to Korea and from there comes steel comes cheaper that that produced locally”, he said.
The executive pointed to faster product updating, following more closely changes to the Romanian-made Logan and Sandero.
“But the Duster will keep being updated here prior to Europe because the SUV was first launched in Brazil where it really is a hit,” he said.
Shrugging off French air traffic controllers' strike action, this week saw many of the industry's top executives gather for Automotive News Europe's Congress in Paris. Here is a brief snapshot of what...
Senior Nissan executive Andy Palmer has told an auto industry forum in London that the Chinese OEMs are set to grab a big slice of future growth in the world's automotive market....
Dacia, Renault's budget car brand, is playing its part in helping Renault to maintain margins in Europe's cut-throat car market, according to Renault's entry range programme director....
Top Nissan Motor executive Andy Palmer told an auto industry forum in London demand is growing worldwide for new cars, particularly in China and India....
SoVAB, or Société des Véhicules Automobiles de Batilly, a wholly-owned Renault subsidiary located in Batilly, Meurthe-et-Moselle (France), has made 2m large commercial vehicles since 1980....
Nissan is retrospectively extending battery warranty from three to five years for about 10,000 European owners of the original, Japanese-built Leaf....
- Brexit could lift UK auto production – Asian view
- Audi S8 plus - if 585PS just isn’t enough power
- Recalls redux - the week that was
- Driving the new Q30, and Infiniti future models
- Ford and Lincoln future models into the 2020s
- Mixed reaction to Tesla's latest plans
- Why has Teslamotors.com become Tesla.com?
- General Motors Europe in profit as records tumble
- General Motors re-thinks India strategy - report
- Volkswagen emissions scandal hits Porsche SE