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Saturday, Jun 07, 2008
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Business Daily from THE HINDU group of publications Saturday, Jun 07, 2008 ePaper | Mobile/PDA Version | Audio |
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Cars Corporate - New Projects Renault Nissan project gets off the ground
The plant will have separate manufacturing lines for the two partners, each of whom intend to produce two lakh cars a year. 
For Renault-Nissan plant: Mr Shohei Kimura, Corporate Vice-President of Nissan Motor Co Ltd, shovelling sand in a symbolic representation during the ground breaking ceremony at the site of the proposed Renault-Nissan assembly plant at Oragadam near Chennai on Friday. Also seen are (from left) Mr M.F. Farooqui, Tamil Nadu Industries Secretary; Mr Michel Gornet, Executive Vice-President, Manufacturing and Logistics, Renault Group; and Mr Colin Dodge, Senior Vice-President, Nissan Motor Co Ltd. Our Bureau
Chennai, June 6 Renault Nissan Automotive India Pvt Ltd, a joint venture of Renault and Nissan, today broke ground at Oragadam, 50 km from Chennai, for the construction of a car plant that would annually produce 4,00,000 cars after two years. The plant, by far the largest investment in Tamil Nadu, is coming up at an investment of Rs 4,500 crore. When in operation, it will employ 4,000 people. The plant will have separate manufacturing lines for the two partners, each of whom intend to produce two lakh cars a year. However, the upstream facilities, such as the plant for making engines and gearboxes and stampings, which are capital intensive, will be common for both. The French car major, Renault, intends to produce a few models based on the Logan platform. Nissan would make cars compact cars (like Maruti Alto and Hyundai Santro), including the next generation of Nissan’s Micra, said Mr Colin Dodge, Senior Vice-President, Nissan Motor Company. While Renault would sell its cars through its joint venture with Mahindra & Mahindra ( Mahindra Renault India Ltd), Nissan is engaging with Hover Automotive India Private Ltd as its service partner for marketing, sales, after-sales and dealer development. Mr M.F. Farooqui, Tamil Nadu’s Industries Secretary, noted that the government had allotted 640 acres of land for the project and another 160 acres for creating a vendor park. “Some pockets are still to be acquired but we will hand over the land before the company begins manufacturing,” he said. When the project was announced 16 months ago, it was to be a three-way joint venture, of Renault, Nissan and Mahindra and Mahindra. M&M later dropped out, citing preoccupation with its other ventures. This caused some delay in commencement of construction. Renault and Nissan have had a decade-long alliance. In 1999, they picked up stakes in each other, after which Renault turned around the ailing Japanese car maker. Today, Renault has 44 per cent stake in Nissan; Nissan has 15 per cent in Renault. More Stories on : Cars | New Projects
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