Renault Announces New Investments in Brazil
April 17, 2014: Investments of R$ 500 million (£133 million) from 2014 to 2019 will be allocated to the development of new vehicles in the Curitiba plant An additional R$ 240 million (£64 million) over the next 10 years will support the creation of a new distribution centre to supply Renault’s 275 outlets in Brazil and other markets.
Renault Group Chairman and Chief Executive Carlos Ghosn today announced a new investment cycle in Brazil in the amount of R$ 500 million (£133 million) over the 2014-2019 period. This investment will be channelled into the development of two new cars at Renault’s plant in Curitiba.
“Since 2011, Brazil has been the brand’s second largest market after France and it is a priority in the Group’s global growth strategy”, says Carlos Ghosn. Renault Brazil successfully completed its previous investment plan and is now pursuing the ambition of expanding its domestic market share”.
Renault has now been producing in Brazil for fifteen years. With a market share of 6.7% at end-March, Renault is reaffirming its position as the fifth largest carmaker in the country. The Group is targeting an 8% market share by 2016.
Thanks to its previous investment plan of R$ 1.5 billion (£398 million), Renault strengthened its growth strategy in Brazil based on three pillars:
Production capacity increase from 280,000 to 380,000 annual units at the Curitiba Ayrton Senna industrial complex Product range update with two brand-new models launched in 2013: Master and New Logan Dealership network expansion with 100 new stores opened in the last three years, totalling 275 sales outlets.
New national parts distribution centre
Renault also announced today the implementation of a new national parts distribution centre in the city of Quatro Barras – State of ParanŠ – with start of operations planned for the second half of 2015. This new centre represents an investment of R$ 240 million (£64 million) over the next 10 years and the creation of 250 jobs. Daily operations would include movement of 120 heavy-duty trucks.
In addition to meeting the needs of Renault dealerships nationwide, the new distribution centre will also supply parts and components to Argentina, Chile, Colombia, Mexico, Paraguay, Peru, Uruguay, Venezuela, Central America, South Africa and France.