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Renault plans SA production

2007-03-22 08:50

Renault could build the Dacia Logan here

Renault South Africa appears close to securing the contract to assemble the budget Logan locally.

According to news reports, strong demand for the entry-level car has prompted Renault to consider increasing Logan production in other emerging markets.

The company has been quoted as saying it wanted to start assembling the car in Indonesia, Pakistan and South Africa.

Renault executives confirmed at the Durban Motor Show that there was a strong possibility that the Logan could be assembled in South Africa.

Renault has production capacity in South Africa via its global alliance with Nissan. Nissan confirmed in 2005 that it would not renew its assembly agreement with Fiat Auto South Africa, which is due to expire in July 2008.

Production of the Logan, developed by Renault subsidiary Dacia, started in 2004 with the budget model aimed at consumers in emerging economies.

In addition to Dacia's Romanian plant, five production sites in Russia, Morocco, Columbia and Iran were also planned.

Based on the Logan's success, Renault is already hoping to raise its output to 900 000 vehicles between 2006 and 2009.

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