The Renault-Nissan Alliance has announced it will invest US$160 million in Korea to meet anticipated demand for new vehicles and to grow its Renault Samsung Motors brand.
Production of the next-generation Nissan Rogue in Busan, Korea, will begin in 2014, with an annual capacity of about 80,000 units. The plant aims to build a total of 180,000 vehicles this year for sale in Korea and 60 other countries.
Earlier this year, Renault Samsung Motors (RSM) launched its ‘RSM 2012 Revival Plan’, which aims to achieve efficiency and cost competitiveness in Busan, while expanding its vehicle line-up from its current total of four models. Next-generation Rogue production in Busan gives more momentum to this plan, the Alliance said.
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.
Commenting on the announcement, Renault-Nissan Alliance chairman and CEO Carlos Ghosn said: "Adding production in Korea shows a commitment across the Alliance to helping Renault Samsung Motors achieve its targets for cost competitiveness and growth.
"The Busan announcement represents a unique 'win-win-win' for Renault, Nissan and RSM, demonstrating the flexibility and power of the Alliance for all partners—and I am counting on every RSM employee to contribute to the successful completion of this project."
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.
