Asian Automakers Eying Production Plants in Morocco

Chinese automakers are basically the only players in the automotive industry who are continuously seeking to expand their operations, despite the difficult conditions everyone else is currently experiencing. According to a report by Reuters, Asian automakers are now establishing plans to open new production facilities in Morocco. Some companies have already discussed with the local government the first details, the source added explaining that the new plants could produce more than 200,000 cars a year.

Adil Bennani, the chairman of Givet, a Moroccan car importer, confirmed the report saying that beside Asian automakers, Renault has also expressed interest in expanding operations in the country.

"Carmakers from Japan and other Asian countries are in talks with the authorities here to set up factories with capacities similar to Renault's or bigger than that," Bennani said.

"The negotiations were under way and they are shrouded in secrecy because of fierce competition from another North African country which seeks to lure such projects."

What's interesting is that Renault is already present in the region, as the French automaker last year signed a deal with the local government to build a new facility projected to start operations as soon as 2010. The factory will have an initial production capacity of 200,000 cars a year, with future plans expected to rise the figures to 400,000 units a year.

That facility would be mainly aimed at low-cost models in the Renault range, including those belonging to the Romania-based Dacia, as well as those marketed under the Nissan brand. Up to 90 percent of the units produced in Morocco will be addressed to export markets.

Renault is already making cars in Morocco, with the popular low-cost Logan aimed at both domestic and overseas markets.