Renault Looking to Build Plant in Algeria
Their next target, apparently, is Algeria where Renault is considering building a new plant to supply Europe with low cost cars. Sources don’t say whether it’s an actual Renault plant, or one which will produce Dacia models, but we are pretty sure it will be the latter. Considering the fact that Dacia’s ‘home plant’, in Romania, has been shut down for a total of six days so far this year, due to summer breaks and a shortage of demand for the Duster, Renault may be looking to close the Romanian plant where workers are paid with an average wage of €450 ($560) and move the operation to this new ‘hypothetical’ Algerian plant, where workers would make half what their Romanian counterparts currently make, and thus reduce production costs even further.
The Romanian plant currently makes the Dacia Logan and the Duster, and with the imminent launch of the second generation Logan, Renault may be looking to move the entire manufacturing operation for the new Logan to Algeria, instead of retooling the Dacia plant in Mioveni, Romania, the ‘spiritual home’ of Dacia, a place where cars have been produced virtually non-stop for the last 46 years.
Story via thetruthaboutcars.com