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The Renault-Nissan Alliance Inaugurates Plant In Chennai, India

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CHENNAI, INDIA – March 17, 2010: Renault-Nissan Alliance Chairman and CEO Carlos Ghosn today joined more than 1,000 guests in Chennai, India, for the inauguration of the first dedicated Renault-Nissan Alliance vehicle manufacturing plant.

The inaugural ceremony was attended by the representatives of state government led by Dr. Kalaignar Karunanidhi, the Chief Minister of Tamil Nadu.

Representing an investment of 45 billion Rupees (650 million) and with the capacity to produce 400,000 units per year at full ramp up, the new Chennai plant will initially employ 1,500 workers at start of production in May 2010. With a supplier park of six companies in Chennai, the company estimates a total of 6,000 jobs will be created in the region.

“Our plant in Chennai represents a key milestone for the Renault Nissan Alliance in India,” said Carlos Ghosn. “With the new Micra, we have the start of a product offensive in India that is supported by a localised manufacturing facility capable of making products for both Renault and Nissan.”

The first vehicle to be produced at the plant will be the new Nissan Micra, a global sub-compact. The Micra, which is the also first vehicle derived from the new V-platform, is destined for the Indian market as well as for export to over 100 countries in Europe, the Middle East and Africa. In 2011, the plant will start production of the Renault Koleos and Fluence, both destined for the Indian market.

The new plant will operate in full compliance with Alliance global manufacturing processes and quality standards. Its production management system, launched for the first time at any plant of Renault and Nissan, is based on mutual knowledge sharing and the best practices from both companies. The new manufacturing process allows the plant to seamlessly mix production of both Renault and Nissan products on same line.

Akira Sakurai, Managing Director and CEO of Renault Nissan Automotive India Private Limited, said: "The opening of any new plant is a significant achievement, but the speed and quality of execution at this plant in Chennai has been exceptional.”

“I want to recognise the support from the state of Tamil Nadu and our employees who have helped make this plant a reality and will lead us to both domestic and export success with the products we are building”, continued Sakurai.

Chennai already plays host to the Renault-Nissan Technology and Business Centre India Private Ltd (RNTBCI) which is contributing to both partners’ global operations in the key areas of advanced research and development, advanced CAE (Computer-Aided Engineering), product development, digital vehicle development, information systems development, and local and global parts sourcing.

The Renault-Nissan Alliance announced its plans to build a new manufacturing plant in Chennai, India, by the signature of a Memorandum of Understanding with the Government of Tamil Nadu on February 22nd, 2008. The official groundbreaking ceremony took place on June 6th, 2008.