The Truth About Cars » algeria http://www.thetruthaboutcars.com The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. Sat, 27 Sep 2014 17:10:13 +0000 en-US hourly 1 http://wordpress.org/?v=3.9.2 The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. The Truth About Cars no The Truth About Cars editors@ttac.com editors@ttac.com (The Truth About Cars) 2006-2009 The Truth About Cars The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. The Truth About Cars » algeria http://www.thetruthaboutcars.com/wp-content/themes/ttac-theme/images/logo.gif http://www.thetruthaboutcars.com Renault Says “Kuss Ummak” To VW, French Unions With Algeria Deal http://www.thetruthaboutcars.com/2012/12/renault-says-kuss-ummak-to-vw-french-unions-with-algeria-deal/ http://www.thetruthaboutcars.com/2012/12/renault-says-kuss-ummak-to-vw-french-unions-with-algeria-deal/#comments Fri, 21 Dec 2012 14:00:28 +0000 http://www.thetruthaboutcars.com/?p=471316 Renault’s Algerian plant became a done deal Thursday, with production beginning in mid-2014, which will see the French auto maker become the sole passenger car builder in the North African state. The Symbol, a re-badged Dacia Logan, will be the sole vehicle produced in Algeria. French labor unions will undoubtedly be unhappy that their domestic auto makers […]

The post Renault Says “Kuss Ummak” To VW, French Unions With Algeria Deal appeared first on The Truth About Cars.

]]>

Renault’s Algerian plant became a done deal Thursday, with production beginning in mid-2014, which will see the French auto maker become the sole passenger car builder in the North African state.

The Symbol, a re-badged Dacia Logan, will be the sole vehicle produced in Algeria. French labor unions will undoubtedly be unhappy that their domestic auto makers are sending manufacturing jobs offshore as they cut domestic production, but the economics necessitate production in a low-cost country.

A French spokesman told Just-Auto

“It is a win-win partnership between Renault and Algeria. This model has never been produced in France and never will be. We can’t produce low-cost vehicles in a high-cost country – it doesn’t work economically.”

Meanwhile, French President Francois Hollande praised the deal during his state visit to Algeria on Thursday. Hollande and the French auto industry have scored a massive coup by ensuring that no auto maker can set up a plant in Algeria for three years after the start of production. Volkswagen was previously vying to be the one to set up shop in the country, but lost out to Renault in the end. With Carlos Ghosn keen to establish a foothold on the continent, Renault-Nissan should have a strong head start thanks to Renault, Dacia and the forthcoming Datsun brand, which is also targeting Africa as one of its main markets

The post Renault Says “Kuss Ummak” To VW, French Unions With Algeria Deal appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2012/12/renault-says-kuss-ummak-to-vw-french-unions-with-algeria-deal/feed/ 8
Algerian Government Rejects French Offer Of PSA Stake, Seeks Renault’s Love http://www.thetruthaboutcars.com/2012/12/algerian-government-rejects-french-offer-of-psa-stake-seeks-renaults-love/ http://www.thetruthaboutcars.com/2012/12/algerian-government-rejects-french-offer-of-psa-stake-seeks-renaults-love/#comments Tue, 18 Dec 2012 16:58:11 +0000 http://www.thetruthaboutcars.com/?p=470594 The fate of PSA and the Algerian people has been intertwined for decades. The group’s Aulnay plant, which is due to close, was originally staffed by immigrants from North Africa, lured by the promise of a better life and secure jobs in France. And while Peugeot sales withered in France, the brand has been traditionally […]

The post Algerian Government Rejects French Offer Of PSA Stake, Seeks Renault’s Love appeared first on The Truth About Cars.

]]>

The fate of PSA and the Algerian people has been intertwined for decades. The group’s Aulnay plant, which is due to close, was originally staffed by immigrants from North Africa, lured by the promise of a better life and secure jobs in France. And while Peugeot sales withered in France, the brand has been traditionally strong in North Africa, with 2011 bringing a 93 percent increase in sales for Peugeot.

But Algeria’s push for a domestic car industry doesn’t seem to include PSA. Arch-rival Renault is due to set up a factory in the country, but PSA has apparently rejected overtures from the French government to take a stake in the ailing car maker.

French President Francois Hollande is due to visit Algeria this week, and is eager to discuss the possibility of Algeria investing in PSA. But according to French paper La Tribune, Algeria wants no part of it.

Instead, they want to emulate the situation in Morocco, and that means a domestic car manufacturing industry in partnership with Renault. La Tribune reports that a deal with Renault will be signed any day now, and Algeria even decided to forgo a plant with Volkswagen so the Renault deal could go forward. Under the terms of the Renault agreement, the Algerian government will hold a 51 percent stake in the plant, which will produce the Renault Symbol – a rebadged Dacia Logan.

Despite the rebuff, PSA is still strong in Algeria, with Peugeot ranking as the #2 brand behind Renault. But that won’t do much to aleviate PSA’s troubles in its home market. The birth of a domestic auto manufacturing industry in the former colonies, right alongside the slow death of France’s own industry only makes things worse.

The post Algerian Government Rejects French Offer Of PSA Stake, Seeks Renault’s Love appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2012/12/algerian-government-rejects-french-offer-of-psa-stake-seeks-renaults-love/feed/ 6
Renault, VW, In Spat Over North African Plants http://www.thetruthaboutcars.com/2012/11/renault-vw-in-spat-over-north-african-plants/ http://www.thetruthaboutcars.com/2012/11/renault-vw-in-spat-over-north-african-plants/#comments Fri, 23 Nov 2012 14:00:35 +0000 http://www.thetruthaboutcars.com/?p=467713 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 […]

The post Renault, VW, In Spat Over North African Plants appeared first on The Truth About Cars.

]]>

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.

The post Renault, VW, In Spat Over North African Plants appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2012/11/renault-vw-in-spat-over-north-african-plants/feed/ 2
Decades After Bringing Workers To France, Jobs Go Back To Africa While France’s Promise Disappears http://www.thetruthaboutcars.com/2012/07/decades-after-bringing-workers-to-france-jobs-go-back-to-africa-while-frances-promise-disappears/ http://www.thetruthaboutcars.com/2012/07/decades-after-bringing-workers-to-france-jobs-go-back-to-africa-while-frances-promise-disappears/#comments Mon, 16 Jul 2012 13:00:41 +0000 http://www.thetruthaboutcars.com/?p=452883 The establishment of a new manufacturing base in North Africa has fascinated me for the past couple months – though few others seem to really care. The leader in this movement has been Renault, which is setting up plants in Morocco and Algeria to build their popular, low-cost Dacia vehicles in factories where employees earn […]

The post Decades After Bringing Workers To France, Jobs Go Back To Africa While France’s Promise Disappears appeared first on The Truth About Cars.

]]>

The establishment of a new manufacturing base in North Africa has fascinated me for the past couple months – though few others seem to really care. The leader in this movement has been Renault, which is setting up plants in Morocco and Algeria to build their popular, low-cost Dacia vehicles in factories where employees earn a fraction of what a French assembly line worker would make.

PSA doesn’t have a low-cost brand of it’s own, so jobs haven’t gone across the Strait of Gibraltar – yet. But the closing of the Aulnay plant, where a massive contingent of North African immigrants (now French citizens) work, is a compelling snapshot of the socioeconomic and racial dynamics of France that happens to intersect with the auto industry.

Volumes have been written on France’s North African population and their integration (or lack thereof) into French society. In the broader scope, the story of Aulnay will be a footnote, but for the workers whom Citroen recruited directly in the early 1970′s, building cars is all they have known since they left the Maghreb.

The North African workers were recruited for the age-old reason that continually draws economic immigrants looking for a better life; the natives consider themselves above such labor. Citroen, which owned the factory at the time, wanted to avoid hiring native French workers, which they felt were tainted by Marxist views on labor relations. One Arab worker delivered an invective that wouldn’t sound out of place on a Rush Limbaugh program, stating

“Today’s Frenchman is spoilt”, says Yassir,an official of the CSL union. “He gets everything on a plate — social security, paid leave, a library, a discothèque. He can count on education helping him up the social ladder. He won’t accept exploitation. He refuses to work on the production line”.

In what would be emblematic of the social problems that exist in contemporary France, Citroen and other automakers domiciled the new immigrants in bleak, high-rise projects, like Cite des 3000, where “…80 percent of the dads work for PSA.” Aulnay and Cite des 3000 was one of the sites of the infamous 2005 riots in Paris, where North African youths clashed violently with police.

Unionization at Aulnay was generally sympathetic to PSA, which kept a tight lid on the CGT, a radical Marxist organization that takes a hard-line adversarial approach to management. The CGT was generally credited with improving working conditions at the plant, but still represents only 40 percent of the workforce.

The CGT, for all its outdated views, can’t shoulder the blame entirely. French President Francois Hollande made reference to PSA’s “strategic choices which have not been good” - Peugeot is lacking in the small cars that once made them great, while Citroen is no longer making the DS, just premium small cars that bear those two letters, with none of the groundbreaking looks or technology that gave the original DS such prestige.

Everything in the middle – precisely what PSA builds – is being decimated, while the low and high end segments are thriving. And rival automaker Renault is having a field day with their low cost Dacia brand. Dacia vehicles, like the Duster SUV and Lodgy minivan are winning critical and commercial acclaim everywhere from India to England – Renault has slashed their British lineup dramatically, leaving only the Renaultsport performance cars and a couple other models, to make room for the bargain-priced Dacias.

And in a twist of poetic justice, the Dacias, which some French observers have cited as a threat to the domestic car industry, are being built in North Africa, by the former countrymen of the first generation Aulnay workers, for a fraction of the wages that Renault would pay to a French worker. The 1,800 euro a month salary is by no means a fortune, but it is a ticket to a middle class life, decent housing and the benefits of the French welfare state. For an ethnic minority in a country where one’s best hope is a middling civil service job, working in a car factory is a highly coveted position, which makes the prospect of an African assembly base, capable of exporting 85 percent of its 400,000 unit capacity, even more threatening.

While CGT leaders and even former President Nicolas Sarkozy have come out against the African plants, there’s no escaping that the low cost cars are the right product at the right time; current economic conditions make car purchases particularly unappealing, and if one can purchase a vehicle as good as a Scenic or Kangoo for a fraction of the cost, then why not? Of course, the Lodgy and Duster can only be priced this way because the 250 euro a month salary makes the cars unaffordable for the Moroccan workers that build them. Unfortunately, it’s looking more and more like the French system that enabled the cradle-to-grave package that came with building cars is equally out of reach.

 

The post Decades After Bringing Workers To France, Jobs Go Back To Africa While France’s Promise Disappears appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2012/07/decades-after-bringing-workers-to-france-jobs-go-back-to-africa-while-frances-promise-disappears/feed/ 8
Renault To Build Plant In Algeria http://www.thetruthaboutcars.com/2012/06/renault-to-build-plant-in-algeria/ http://www.thetruthaboutcars.com/2012/06/renault-to-build-plant-in-algeria/#comments Fri, 22 Jun 2012 16:59:22 +0000 http://www.thetruthaboutcars.com/?p=449899 African car plants are nothing new, but vehicle exports from the continent are the exception, rather than the rule. Renault, which already has a presence in Morocco, is looking to expand into Algeria. Renault’s Tangiers factory builds cars like the Dacia Lodgy, and can crank out up to 400,000 vehicles annually. Building cars in Morocco […]

The post Renault To Build Plant In Algeria appeared first on The Truth About Cars.

]]>

African car plants are nothing new, but vehicle exports from the continent are the exception, rather than the rule. Renault, which already has a presence in Morocco, is looking to expand into Algeria.

Renault’s Tangiers factory builds cars like the Dacia Lodgy, and can crank out up to 400,000 vehicles annually. Building cars in Morocco is significantly cheaper than building them in France, or Dacia’s homeland, Romania. Workers are paid 250 euros a month on Morocco, 450 a month in Romania and 1,800 per month in France. Keeping these costs down is of the reasons than high-quality “low cost” cars can be sold in Europe and world markets, but French unions are less than pleased.

The Algerian plant is still in flux, and there’s no word on whether Renauts or Dacias will be built there, and if they’ll even be exported to Europe. The Moroccan-built Dacias are getting their share of praise from the buff books, and with the way things are going in Europe, cheaper cars are going to be much more appealing to those who can even afford a new car. Renault is planning on axing a significant portion of their lineup in the UK, and using Dacia cars to fill the holes.

The post Renault To Build Plant In Algeria appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2012/06/renault-to-build-plant-in-algeria/feed/ 6