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Renault-Nissan Alliance invests $160M in Korea; zero-emission vehicle in 2013

Renault-Nissan Alliance will invest US$160 million in Korea to meet anticipated demand for the next-generation Nissan Rogue and to accelerate growth of Renault Samsung Motors. Production of Nissan Rogue crossover in Busan, Korea, will begin in 2014, with an annual capacity of about 80,000 units. This year the plant aims to build about 180,000 vehicles for sale in Korea and 60 other countries.

Next-generation Rogue production in Busan gives more momentum to Renault Samsung Motors, which earlier this year launched the RSM 2012 Revival Plan. The plan aims to achieve efficiency and cost competitiveness in Busan, while expanding RSM’s vehicle lineup, which today consists of four models.

As part of the RSM Revival Plan, RSM will introduce a new small crossover and the zero-emission SM3 ZE in 2013. RSM’s current lineup includes the SM3 compact, the SM5 midsize sedan, the SM7 large sedan (adapted for China as Renault Talisman) and the QM5 SUV, which is sold as the Renault Koleos outside Korea.

Adding production in Korea shows a commitment across the Alliance to helping Renault Samsung Motors achieve its targets for cost competitiveness and growth.

—Renault-Nissan Alliance Chairman and CEO Carlos Ghosn

Renault, which is expanding significantly outside of its historic core markets, is expected to sell more than 50% of its vehicles outside of Western Europe in 2013, from 43% in 2011 and 37% in 2010. Renault aims to achieve a 10% market share in Korea, up from 7% in 2011.

Formed in 1999, the Renault-Nissan Alliance achieved a record 8.03 million vehicle sales in 2011 in nearly 200 countries. Brands include Renault, Nissan, Infiniti, Dacia and Renault Samsung Motors.

RSM is a key asset for French automaker Renault as it increases its industrial footprint and sales volume outside western Europe, particularly in fast-growing Asia-Pacific markets.

Comments

HarveyD

Renault-Nissan-Dacia-Samsung + other JVs with one or two Chinese-Indian manufacturers will soon become a major worldwide vehicle builder with 10M+ units a year. Our Big-3 will have strong competition and may have to form more alliances to survive.

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