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Renault-Nissan partnership invests $1.8 billion in Brazil

Investments include new manufacturing plant, the expansion of another and 23 new models introduced by 2016


October 6, 2011
by CanadianManufacturing.com Staff

RIO DE JANEIRO—Renault and Nissan have announced investments totaling US$1.8 billion to expand manufacturing and sales throughout Brazil—one of the fastest growing economies in the world.

Almost two dozen new models designed for the Brazilian market are expected over the next five years to increase the partnership’s current market share of 6.5 per cent to 13 per cent by 2016.

Nissan will invest $1.5 billion to build a new manufacturing facility in Resende, in the state of Rio de Janeiro. The plant, expected to open in 2014, will produce more than 200,000 vehicles a year and create 2,000 jobs for the region.

Renault is investing $285 million to expand an existing factory in Curitiba, in the state of Parana. The expanded plant will have an annual capacity of 380,000 vehicles per year starting in 2013.

The French automaker will have invested an additional $571 million to cover the development, industrialization and launch of new vehicles for the Brazilian market. The expansion will create 1,000 jobs.

The company already employs 6,000 people in Brazil—its second largest market after France.

Brazil, which overtook Germany in 2010 as world’s fourth biggest car market, is second to China among the emerging markets for new-car sales.

Nissan expects to launch 10 new models in Brazil by 2016, including the Nissan Versa in November.

Renault expects to debut 13 more products for Brazil from 2012 to 2016. By 2016, Renault’s product mix will cover 90 per cent of the Brazilian market, up from 76 per cent today.

The announcement comes after the Brazilian government implemented a new tax on imported vehicles and those sourced overseas. Plant expansion and modernization should help both companies reduce import duties and transport costs.