ALGERIA: Renault to ink assembly deal tomorrow as car market booms
Renault is to ink an agreement tomorrow (19 December) to establish an assembly plant in Algeria, although the automaker is remaining tight-lipped as to details of models and staffing.
The signing ceremony - in the capital of Algiers - will coincide with tomorrow's State visit by President Francois Hollande to Algeria during which he will meet his counterpart Abdelaziz Bouteflika.
"We can't confirm any details other than we are planning to sign with the Algerian government [with] the view of creating an industrial assembly for the development of the local market," a Renault spokeswoman in Paris told just-auto.
"It is expected to happen tomorrow - this is to coincide with Hollande's visit to Algeria. The Algerian government is the one in charge of it and we will go along with their requests."
Speculation has centred on any facility being constructed near the Algerian coastal city of Oran, which could produce around 75,000 cars with any model possibly based around the Renault Clio.
Algeria has extremely close ties to France with Paris being the former colonial power and Renault is eyeing the "enormous potential" of its neighbour lying just across the Mediterranean.
"It [Algeria] is the second largest automobile market in Africa after South Africa," said the Renault spokeswoman. "The total industry volume for vehicles sold in 2012 at the end of November, was 410,000.
"The market has grown by 50% this year [while] Renault's volumes have grown by 57% [and] we are the number one brand in Algeria. "We have been in negotiations with the Algerian government for a number of years."
France's unions are sure to eye the development in Algeria with keen interest, coming as it does as Renault plans a significant rise in capacity in North Africa at its Tangier, Morocco, plant that produces Dacia models.
The plant is currently making the Dacia Lodgy (compact MPV) and Dokker (light commercial vehicle) models with a capacity of 30 vehicles per hour and 170,000 vehicles a year (phase 1 of the project).
However, the company is planning in 2013 to begin the step up to capacity of 60 vehicles an hour or 350,000 a year in a second phase.
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...
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....
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....
The Chinese ministry of environmental protection has approved Dongfeng Renault's plan to set up a vehicle plant in Wuhan, Hubei province....
The current Volkswagen Passat for European markets, launched in 2005, will not be replaced until "late 2014 or early 2015", a company insider has told just-auto.com....
The Renault group increased its share of the French passenger car market 0.7 points year on year for a 23.2% share but the automaker's regional chief branded results "unsatisfactory"....
Brazilian auto sales rose in May from a year earlier, bolstered by government tax cuts to support the local car industry, sources who have seen preliminary sales data told Reuters....
- Auto business confidence hit but holding up
- New Astra Sports Tourer & future Opel/Vauxhalls
- Recalls redux - the week that was
- Brexit could lift UK auto production – Asian view
- Driving the new Q30, and Infiniti future models
- General Motors re-thinks India strategy - report
- Mixed reaction to Tesla's latest plans
- Tesla drops Mobileye in wake of Autopilot issue
- Ford rolls out MY2017 smartphone integration
- Nissan Kicks making world debut in Olympics Brazil