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Renault will invest to consolidate the fourth force in Brazil

Written by Paulo Nogueira
Published 27/05/2019 às 01:00

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Renault is still not talking about numbers, but it has already announced that it will carry out a new cycle of investments in Brazil later this year.

Renault aims to continue the R$ 3,2 billion invested between 2014 and 2018. This investment allowed the multinational to increase its share of the Brazilian market from 7,1% to 8,7% in four years. The company has set a new target where it intends to reach 10% of the national share by 2022, precisely the period that involves the new financial contribution. If all goes well, Renault can consolidate itself as the fourth force in the national industry, behind only Chevrolet, Volkswagen and Fiat.

“To reach our goal of 10% market share by 2022, we will launch new products”, summarized the president, without saying what the news would be. Said Ricardo Gondo, president of Renault do Brasil.

The automaker already occupies this position in 2019, with 8,8%, but is closely followed by Ford (8,4%) and Toyota (8,3%). This year it only lost the position once, in January, to its North American rival.

The definition of a new investment cycle at the plant in São de José dos Pinhais (PR) was tied to Rota 2030, a new program that defines the rules for the manufacture of cars produced and sold in the country.

In the first four months of 2019, the diamond company already registered 70,5 vehicles, which means an 18% jump compared to the first four months of 2018. The subcompact Kwid alone was responsible for 1/3 of this volume or 24 units – it is the fifth best-selling car in the country.

Foreign sales represent 30% to 40% of what is done at the Paraná plant, in São José dos Pinhais, both for cars and engines. The brand would have reduced the pace of production with the drop in exports, mainly to Argentina, which absorbs a large part of this production.

The drop in shipments to the neighboring country reached 50% compared to 2018. “Fortunately, we were able to compensate for this loss in exports by growing in the domestic market”, highlighted Gondo.”

Fiat Chrysler and Renault are in advanced talks about rapprochement

Fiat Chrysler is in advanced discussions to strengthen ties with France's Renault, reported this Saturday, May 25, the Financial Times newspaper, citing several people with knowledge of the talks.

According to the newspaper, car manufacturers want to join forces to face the structural challenges of the global car industry.

A deal could see FCA join the Renault-Nissan-Mitsubishi alliance in the future, some of those people added, while also warning that the path to that scenario could be tricky because it would involve convincing Japan's Nissan.

Fiat will generate 16 new jobs in Brazil with an investment of R$ 16 billion

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Paulo Nogueira

With a technical background, I worked in the offshore oil and gas market for a few years. Today, my team and I are dedicated to bringing information from the Brazilian energy sector and the world, always with credible and up-to-date sources.

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