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COLOMBIA: Sofasa Renault starts Logan exports to Chile

By just-auto.com editorial team | 12 October 2007

Colombian Renault assembler Sofasa has announced the start of Logan sedan exports to Chile.

Sofasa began exports to Perú last July

Although Sofasa president Germán Calle did not provide any volume details or predict sales, he noted that Renault has 3% market share in Chile and this latest export initiative was possible due to impressive cost reductions in Colombia, especially in local content development.

Calle said Sofasa and supplier Rudico Company have invested $US6m to make dashboards, doors trim and bumpers in Manizales city, 285 kilometres north of Bogotá. These and other locally made parts give the Logan 43% Colombian content, 15 percentage points more than the government requires, and reduces the cost of importing the CKD kits.

Sofasa's shipments to Perú and Chile, and others to come for Central America, are made by sea, with vehicles freighted in containers.

Other economies come from logistics cost reductions - the CKD kits are transported cheaply on the Magdalena river.

Sofasa daily production is now 360 vehicles and Logan sales are about 850 a month.

Calle added there are plans to keep increasing installed capacity and to develop local OEM suppliers in order to hit 50% Colombian content.

Juan Vargas