Renault Plant In Good Progress, Says Montebourg
News: The plan for French automaker Renault's plant in Algeria is making good progress, French minister Arnaud Montebourg said during his visit to the country. The joint venture, which was scheduled to be established by mid- September for the plant's installation, is yet to be created, however. Under the agreement, the plant will initially produce 75,000 vehicles a year and will reach 150,000 vehicles a year later.
BMI View: As the leading carmaker in the country with a market share of 19.9% in 2011 (25% including Dacia), Renault is one of the few carmakers with the domestic sales volume to support this level of output, which increases the importance of the project to the industry's development as a production base. The plan to increase capacity at a later date also suggests export plans, especially if the plant is based near a port.