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Renault considers using Nissan plants to build Logans

CHIBA, Japan - Renault’s global entry level car, the Dacia Logan, may possibly be built in Nissan plants according to a Reuters report. Patrick Pelata, executive vice president of product planning and programmes, told the news agency that countries with Renault manufacturing operations such as Brazil, Colombia, Morocco, Romania, Russia, Turkey, India and Iran offered potential for the no-frills family car. It is now mainly made by Dacia in Romania. However, if Nissan plants are considered then it brings in China, Mexico and South Africa. Sales of the Logan are well ahead of expectations and will exceed 150,000 units in 2005 and more than 200,000 in 2006. Current expansion plans would take Logan production to one million units a year.

Reuters also reported that Renault is negotiating with two Chinese cities to build a plant. One of them is Guangzhou where Dongfeng Motor, China's third biggest car maker and Nissan's local joint venture partner, already has a factory. However, he said that Renault's local venture would be a different entity from Nissan's so as to keep the two brands distinct. He declined to tell Reuters how long the negotiations might take, but noted that Nissan's agreement had taken more than three years.

He also told Reuters that Renault has no plans yet to enter the US market because the carmaker had many other projects to tackle first, including expanding in or entering the Indian, Eastern European and South American markets.