May 18, 2007 -- Renault Argentina's head, Dominique Maciet, has announced that the company will invest US$65 million in its Santa Isabel plant in Cordoba province to produce the Logan ”world car”, according to AFX News, citing a local company statement. Renault Mercosur General Director Jerome Stoll last week announced that Maciet had signed an agreement with Argentine President Nestor Kirchner to invest a total of US$80 million in the country, including the cost of upgrading the plant to produce the Clio II, and an increase in Kangoo production. Stoll also said that the company planned to bring the Clio II to the plant to free up capacity in Brazil for the Logan (see Argentina: 9 May 2007: ). The initial production target for the Santa Isabel facility was put at 35,000 units per annum, with 80% of the cars manufactured there destined for export, according to the report.Significance: Stoll launched the Renault Logan model in Argentina last week, without detailing the investment plans.
He also intimated that the plant will assemble a Nissan model from 2010, although it is not clear whether this will be the Nissan-badged Logan for export to Mexico. The use of Argentina as an export base comes as a result of the appreciating Brazilian real, which is making exports less profitable from Brazil. Logan production in Brazil will therefore be concentrated on expansion in the local market. The Cordoba plant has the capacity to build 160,000 vehicles annually.
Source: Global Insight Daily Analysis
Source: Factiva
