Renault To Build Plant In Algeria

by Derek Kreindler

June 22nd, 2012 12:59 PM

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.

#Algeria #Dacia #DaciaLodgy #Labor #Morocco #Renault

Comments

Join the conversation

5 of 6 comments

El scotto on Jun 22, 2012

I want a Marrakesh Express GT

Like Reply
Asdf on Jun 22, 2012

...but who in Europe would want to purchase a car made in Algeria?

Like Reply
- Allythom on Jun 22, 2012
  
  Good question. I guess if the quality is up to scratch and the price is low, why not? I doubt that many people really care that much. I'm wondering if more Europeans would buy an Algerian made car than would buy a US made one.
  
  Like
Djn on Jun 23, 2012

Algeria is a former department of France, lots of historical and cultural ties between the two countries. Its a lot less foreign to Frenchmen than Romania.

Like Reply
Vance Torino on Jun 23, 2012

*cough* Well, Algerians already build the cars in France. I suppose it would be OK for Algerians to build the cars in Algeria. Also, the day I was scheduled to tour the BMW plant in Munich, it was closed. Had to shut it down due to massive absenteeism. Turkey was playing in EuroCup 2008, you see.

Like Reply