Nissan, Renault Enters JV To Set Up Unit In Chennai
The French and Japanese auto firms Renault and Nissan Motor have signed up a memorandum of understanding (MoU) with the Government of Tamil Nadu to establish an integrated automotive facility at Oragadam near Chennai.
Both the companies would invest Rs 4500 crore ($1,140 million) for the 50:50 joint venture (JV) unit.
The JV unit, which has been allotted 678 acres, will have installed capacity to make four lakh vehicles annually. The facility is projected to launch the first car by 2010.
While addressing a press meeting after signing the agreement with the state government, Carlos Tavares, executive V-P of Nissan said, “We may not be the first but we will move fast from here on and be nimble footed.”
Both companies refused to give details about the vehicles they will make at the plant, but it is widely thought that Renault plans to launch its small car in cooperation with Bajaj from here.
The original trilateral agreement, signed during February 2007, ideated the total investment of Rs 4,000 crore with Mahindra & Mahindra (M&M) holding up 50% equity stake and the other two automakers 25% each.
The factory will get completed by first half of 2010.
At first, the facility will hire around 3,000 to 4,000 people. Both companies will have their own assembly lines as well as powertrain assemblies.
The alliance will also set up the Renault-Nissan Technical and Business Centre India (RNTBCI) in Chennai by March-end. It will concentrate on factors including product and manufacturing aspects, R & D, cost management, infrastructure and information system.
Senior Vice-President of Nissan Colin Dodge told, “It is a major investment by Nissan into India, next to China. Nissan will like this project to be a world class one and wants it to be a Nissan’s export hub.”
Nissan Motor said that Shohei Kimura, now the company’s corporate vice-president, will head the new Nissan-Renault facility near Chennai.
Mr. Kimura will move to Chennai in a few months to take charge as managing director and CEO of the Chennai operations.
