While many auto manufacturers are turning to China to gain significant growth, the Renault-Nissan combo has moved its attention in a different direction. It has just announced new investments of at least $1.8 billion to expand manufacturing and sales throughout Brazil, one of the fastest-growing economies in the world. It is hoping to double its current market share in the South American country from about 6.5 percent to 13 percent by 2016.
How does it plan to double its market share? A key part of its strategy is the move to offer almost two dozen new vehicles that are specifically adapted to Brazilian consumers’ needs. Because of the nearly militaristic zeal of the new initiative, Renault-Nissan has labeled it its “Brazilian Offensive.”
“Brazil represents a tremendous opportunity, both as a manufacturing base and as the home of a new generation of Renault and Nissan customers,” says Renault-Nissan Alliance Chairman and CEO Carlos Ghosn. “Brazil weathered the recession and emerged as the clear engine of growth for Latin America in the 21st century. We look forward to contributing to the region’s rapidly evolving manufacturing and technological expertise.”
During a news conference in Rio de Janeiro, Ghosn outlined the strategy for growth in his native Brazil and other emerging markets. In it, he revealed a plan to invest $1.5 billion to construct an all-new manufacturing facility and to develop, industrialize and launch new products in Resende, Rio de Janeiro. The Nissan factory, scheduled to begin production in the first half of 2014, will have the capacity to produce up to 200,000 units annually and will create up to 2,000 jobs that are directly associated with the plant.
