Nissan-Renault to Build Major Manufacturing Complex in Morocco; Up to €1B Investment

2 September 2007

The Nissan Renault Alliance announced it will build a major new manufacturing complex with an ultimate capacity of 400,000 vehicles a year in the Tangier region of North Morocco.

Initial planned capacity is 200,000 vehicles from 2010. Planned investments in manufacturing capacity for this project are estimated at €600 million (US$818 million), with a first phase of €350 million.

In addition to this amount, a further specific investment of €200 to €400 million will be made according to the variety of vehicles produced.

Managed by Renault, this Alliance facility would extend Renault’s manufacturing system for the production of competitive vehicles derived from the Logan platform and Nissan’s system for the production of new-generation light commercial vehicles. 90% of these vehicles would be exported.

Commercially present in Morocco since 1928, Renault has been assembling vehicles at SOMACA since 1966. With 27,000 vehicles sold in 2006, the Renault Group is leader on the Moroccan market with its two brands Renault and Dacia, which rank respectively first (16.6%) and second (15.1%).

Launched in July 2005, Logan became the best selling vehicle in Morocco within its first six-months. In 2006, 12,700 Logan were sold in Morocco. SIAB, the Nissan importer, is 100% owned by Renault Morocco and distributes the Nissan brand. In 2006, 1,100 Nissans were sold.

SOMACA (Moroccan Society of Automobile Construction) is located in Casablanca. Owned 80% by the Renault Group and 20% by the PSA Group, SOMACA has been assembling Renault Kangoo since 1997 and Dacia Logan since 2005.