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February 25, 2011updated 08 Apr 2021 8:16am

COLOMBIA: Renault to ship Dacia Duster to Mexico

After an investment of EUR20m, Renault will assemble and export the Dacia Duster to México at the rate of 10,000 a year, local sources told just-auto.

After an investment of EUR20m, Renault will assemble and export the Dacia Duster to México at the rate of 10,000 a year, local sources told just-auto.

Renault has an assembly plant in Medellín (400km north of Bogotá), where, since 1970, it has assembled cars imported in CKD packs from France and, soon, also from Romania where Dacia is based. Local OEM parts content is 25% but this will increase with the Duster.

The 10,000 units will boost the assembler’s exports; it shipped 8,200 in 2010. The plant’s installed capacity is about 60,000 units a year.

“The announced investment will be for OEM production and will double the factory’s output”, said Patrick Pelata, Renault’s COO.

Mexico and Colombia have a free trade agreement (FTA) that has gradually reduced import tariffs which hit zero this year. The sources didn’t say when Duster production or exports will start.

Colombia is also negotiating an FTA with Korea that could take effect in 2012, including the automotive sector.

Korean imports from Colombia represent just 0.04% of its total foreign purchases. Colombia wants to gradually reduce tariffs on built up cars from the current 35% of FOB value over 15 years; the Koreans want zero import duty within seven years.

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