Renault-Nissan Alliance Invests $160 Million in Korea to Speed Global Growth Strategy
Renault-Nissan Alliance will invest US$160 million in Korea to meet anticipated demand for the next-generation Nissan Rogue and to accelerate growth of Renault Samsung Motors.
Production of Nissan Rogue crossover in Busan, Korea, will begin in 2014, with an annual capacity of about 80,000 units. This year the plant aims to build about 180,000 vehicles for sale in Korea and 60 other countries.
Next-generation Rogue production in Busan gives more momentum to Renault Samsung Motors, which earlier this year launched the "RSM 2012 Revival Plan." The plan aims to achieve efficiency and cost competitiveness in Busan, while expanding RSM's vehicle lineup, which today consists of four models.
"Adding production in Korea shows a commitment across the Alliance to helping Renault Samsung Motors achieve its targets for cost competitiveness and growth," said Renault-Nissan Alliance Chairman and CEO Carlos Ghosn. "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."
Korea: Key to Renault's Worldwide Expansion
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.
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.