Great Wall to produce Logan?

Renault considers cooperation with Chinese Koncern Great Wall Motor (GWM), Automotive News Europe has announced. Renault’s spokesperson affirmed, that both companies has already sign the letter of intent to carry out a feasibility study on building low – cost Logan together for the Venezuelan market. Currently, the analysis about project’s profitability are conducting. According to Preliminary information, the project is to be finished in the beginning of 2010.

The cars would be built at a factory already owned by Great Wall's Venezuelan partners, near the city of Guacara, in the northwestern state of Carabobo, about 150 kilometers from the capital Caracas. The two companies plan to initially build 22,000 cars annually for the domestic market, with about 15,000 units for Renault and the remainder 7,000 for Great Wall. The French carmaker has been assembling low-cost Logans in Colombia since 2005.

Renault believes that carrying out final assembly in Venezuela will improve its local profile and allow it to radically boost market share. In 2008, Renault sold about 9,900 imported vehicles in Venezuela, which gave it a 4.2 percent market share, according to company data. The performance was a disappointing downturn from results in 2007, when Renault sold 28,400 vehicles, for a 6.2 percent market share.

If the Venezuelan assembly project goes forward, Renault is expected to contribute about $10 million of Great Wall's estimated $65 million investment costs for launching local production, executives from the two companies told the Venezuelan press.

Cars based on the Logan platform developed by Renault's Romanian subsidiary Dacia are also built in seven other countries worldwide: Romania, Russia, Morocco, Iran, India, Brazil and South Africa.

Source: Automotive News Europe

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