The French automaker has just opened a new assembly facility in Algeria after already having a huge facility in Morocco. The plants are an integral part of its strategy to tap into the fast rising North African markets.
The new factory is producing the latest generation of the Symbol sedan, a very affordable model based on a platform that also underpins models from the affordable Dacia brand. Currently the new factory has an installed production capacity of 25,000 vehicles per year on one assembly line and Renault is considering whether to invest into a second phase that would lift output to 75,000 cars.
Renault is continuously expanding outside its European home region, currently having almost 50% of the sales outside the Old Continent. Algeria, for example, is the French automaker’s tenth largest market, owning a 25.5 % market share in the country that had sales of around 425,000 autos last year – second only to South Africa on the continent. Still, the market has gone down this year, with just over 265,000 units sold after the first nine months, according to the carmaker’s figures.
In other related news, Fitch Ratings has decided to increase the company’s debt rating to investment grade as the French company has expanded profitability thanks to increased overseas deliveries of affordable models.
Via Automotive News Europe, Bloomberg