DOW JONES NEWSWIRES
France's Renault SA (RNO.FR) and Germany's Volkswagen AG
(VOW.XE) are planning to expand their Brazilian manufacturing
operations, at a combined cost of at least 2 billion Brazilian
reais ($1.2 billion), the Brazilian newspaper Valor Economico
reported on Wednesday.
The news comes even as sales in Brazil are starting to slow,
amid government rules introduced to tame auto credit growth, as
well as a slowing local economy.
Renault is preparing a major development in the southern state
of Parana, according to Valor, and may also unveil a new plant for
its Nissan Motor Co. (7201.TO, NSANY) unit. Renault has achieved a
10% market share on average around the world, but is lagging in
Brazil, at just 5%, according to Renault Chief Executive Carlos
Ghosn, who was quoted in the report.
Volkswagen, meanwhile, is considering whether to expand its
existing three plants or build a new one, the report said. The
company builds 3,600 cars per day and wants to increase that by 600
or 700 in the short-term, and 1,200 or 1,400 over the medium term,
according to the head of Brazilian operations, Thomas Schmall, in
the report.
On the web: www.valoronline.com.br