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Renault to Sign Algeria Factory Deal

18 Décembre 2012 - Autoblog

Renault to Sign Algeria Factory Deal

Renault plans to build a factory in Oran, Algeria, as part of its push for growth in Africa. An agreement with the Algerian government will be signed during French President Francois Hollande's visit to the North African country this week, Renault spokeswoman Raluca Barb said today.

The factory will eventually produce as many as 75,000 vehicles in the same segment as the Renault Symbol, a sedan based on the Clio subcompact, Barb said.

Details will be discussed at a press conference in Algiers on Wednesday.

Renault is looking to Africa for growth, pushing rugged, no-frills models such as the Dacia Logan as its sales decline in Europe faster than any other major carmaker.

New-car sales in Algeria increased 46.5 percent in the first half to 225,000 vehicles.

Hollande's visit to the North African country is also likely to raise a potential Algerian investment in PSA/Peugeot-Citroen, a diplomatic source said last week.

With 12 billion barrels of oil reserves, Algeria is the world's largest Francophone nation, yet annual trade with its one-time colonial master is just 10 billion euros.

Renault is the best-selling brand in Algeria with 67,132 vehicle sales in the first 10 months, followed by Peugeot at 54,500, Hyundai at 43,260 and Dacia at 32,918, according to IHS Automotive.

As part of an expansion in North Africa, Renault and alliance partner Nissan Motor Co. are ramping up production at a 1 billion-euro ($1.3 billion) plant in the Moroccan port city of Tangier.

 

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