Renault Argentina is to invest in the production of Dacia platform (but Renault badged) models at its Santa Isabel facility in Cordoba.

The investment of USD100m will be for a new vehicle platform and to provide the factory with the necessary equipment to manufacture the Renault Logan, Sandero and Sandero Stepway.

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Renault said the addition of this new platform will guarantee the continuing production of Renault vehicles in Argentina. The platform will also allow Renault Argentina to add new models to its production plan in the medium and long terms.

“Argentina is a key location for the Renault group as far as the development of its production strategy and sales growth in the Americas region are concerned. The aim is to maintain this expansion and also reinforce the brand’s footing in the country,” said Thierry Koskas.

Over a period of 20 months, Renault said it will deploy its investment in five key areas:

  • the development of its network of local suppliers for the production of parts for these models’ assembly;
  • the production of new parts (seats, bumpers, exhaust and brake systems, etc.);
  • the conversion and modernisation of equipment ahead of the assembly of the different models’ bodies, research and development;
  • staff training in use of the new equipment;
  • modernisation of the paint shop.

Production of the Renault Logan, Sandero and Sandero Stepway will begin mid-2016, with the vehicles themselves due to go on sale in the last quarter of the same year.

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The investment by Renault comes as the Argentine economy and auto sector faces challenges wrought by national debt default and subsequent recession.