Sunday, April 20, 2014

Brazil: French Auto Maker Renault to Proceed with Major Investment in Parana

According to The Latin American Tribune, French automaker Renault announced that it will invest 500 million reais ($222 million) over the next five years in the production of two new models at its plant in São José dos Pinhais in the southern Brazilian state of Parana.

Renault also announced the construction of a distribution center for vehicular parts at Quatro Barras, Parana, with an investment of 240 million reais ($106 million) in the next 10 years, an amount that will include operating costs, according to a communique.

COMMENT: The new distribution center, with an area of 66,000 sq. meters (237,000 sq. ft.), will start operations in the second half of 2014 and will create 250 direct jobs.

The company also announced that it has now concluded, two years ahead of schedule, the investment planned for Brazil during 2010-2015, to the amount of 1.5 billion reais ($666 million).

In the first quarter of the year, Renault had 6.7% of new car sales in Brazil and its goal for 2016 is to reach 8%.