New Renault light truck models built by Nissan under a new agreement announced on Friday will be sold primarily in Europe.
Go deeper with GlobalData
AB Volvo subsidiary Renault Trucks has entered into an agreement “in principle” with Nissan Motor that will see the Japanese company’s trucks sold under the Renault brand starting in the first half of 2007.
Volvo spokesman Marten Wilkforss told just-auto that the new truck line is destined mainly for Europe “though there may be a few markets outside” as well.
The new model, to be sold by Renault Trucks’ dealers, will be based on the same platform as that to be used for the next generation Nissan Cabstar and Atlas and built alongside those models in Nissan’s truck factory in Avila, Spain.
Wilkforss said the Renault models would share major components and the basic cab architecture but would have their own unique “brand style”.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataNissan and Renault already collaborate – together with GM – to build two lines of medium and large light van, again mainly in Europe, while Renault also shares a small van line with Nissan alone.
Volvo noted that the new truck will complement Renault Trucks’ current light Master and Mascott models.
“With its superior manoeuvrability and efficient cost of ownership, the cab-over-engine type of vehicle meets the high expectations of European customers. Another major European player joining forces with Nissan will make this configuration even more successful,” said Andrew Palmer, vice president and global head of Nissan’s light commercial vehicles business unit in a statement.
“This agreement is part of our strategy to grow Nissan’s global LCV business through direct and OEM sales,” Palmer added.
Nissan already supplies engines for Renault Trucks’ light duty range and was therefore a natural choice for expanding the range, the Japanese firm said.
Nissan said it targeted light commercial vehicles as one of four ‘breakthrough’ areas for the company under its Nissan Value-Up three-year business plan, which started in fiscal year 2005. Ambitious objectives for the LCV business are to double operating profit to 8% and grow volume by 40% to 434,000 units worldwide by fiscal year 2007.
In Europe, Nissan’s LCV sales have increased by 29% over the past two years.
