Ghosn wants Renault to make more models in Mexico

MEXICO CITY -- Nissan-Renault chief Carlos Ghosn says the Renault brand is committed to Mexico and wants to build more models here in the future.

Ghosn, CEO of both Nissan Motor Co. and Renault SA, flew here yesterday after visiting the Los Angeles auto show.

"Renault is fully committed to Mexico," he told reporters. "There will be new vehicles, and some will be sourced in Mexico, produced in Mexico and be from the popular range. More will be imported and be much more in the upper range."

Renault sold 18,613 vehicles in Mexico in 2007, down 8.2 percent from 2006, according to AMIA, Mexico's auto industry association.

Through September, Renault's 2008 sales totaled 11,968, down 8.8 percent from the same period in 2007, reported Mexico's dealers association, AMDA.

The Clio is the sole Renault vehicle produced in Mexico, at Nissan's assembly plant in Aguascalientes. Other models are imported.

Ghosn said, "Renault needs to have three basic models, localized in Mexico, plus imports."

Asked by Automotive News about possible new investment by Nissan-Renault in Mexico, Ghosn replied: "Renault-Nissan will need more capacity in the future. I don't think today anything can be decided. But our plan is, no doubt, that line capacity will increase in the future, in Mexico and in other markets."

In answering another question, Ghosn said Nissan and Renault have more than 20 percent market share in Mexico.

"We have invested a lot and have received good returns on our investments," he said. "I think we won't reduce our head count or production capacity in Mexico in 2009."

Referring to Mexico's weakening retail market, Ghosn said: "I think the Mexican market will be among the first to get back up and grow. I don't think the decline will be very long term or permanent. The reason is that the conditions elsewhere don't exist here."

You can reach Stephen Downer at sdowner44@yahoo.com.


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