Renault, VW, In Spat Over North African Plants
Renault’s plans for a plant in Algeria have stalled, amid the French auto maker’s desire for an agreement barring auto makers from setting up shop in the country for 5 years after the plant comes online – and Volkswagen is apparently what’s keeping Renault up at night.
France’s La Tribune reports that Renault’s plan for a factory with a capacity for 75,000 units a year, (largely for domestic consumption) is being hampered by Volkswagen’s desire to build a factory in Algeria. The country has a growing market that’s hungry for new cars, and a foothold in North Africa would be beneficial for VW.
Renault doesn’t want VW to set up shop in Algeria, and their government will have to decide on whether to bend to Renault’s demands, or to allow Volkswagen to establish a plant there, at the risk of Renault bailing on a factory of their own. La Tribune seems to think that Renault will get its way, leading to VW turn to a possible factory in Morocco – where Renault’s presence is already established.
More by Derek Kreindler
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"Renault’s plans for a plant in Algeria have stalled, amid the French auto maker’s desire for an agreement barring auto makers from setting up shop in the country for 5 years after the plant comes online" FAIL French automakers are the worst.
Neo-colonialism at its worst. Given the turbulent French-Algerian relationship in recent history, it will be interesting to see how this plays out.