Renault-Nissan prepares for assault on Korean market with heavy investment

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Production of Nissan Rogue crossover in Busan, Korea, will begin in 2014, with an annual capacity of about 80,000 units. This year the plant aims to build about 180,000 vehicles for sale in Korea and 60 other countries.

Next-generation Rogue production in Busan gives more momentum to Renault Samsung Motors, which earlier this year launched the “RSM 2012 Revival Plan.” The plan aims to achieve efficiency and cost competitiveness in Busan, while expanding RSM’s vehicle lineup, which today consists of four models.

‘Adding production in Korea shows a commitment across the Alliance to helping Renault Samsung Motors achieve its targets for cost competitiveness and growth,’ said Renault-Nissan Alliance chairman and chief executive officer, Carlos Ghosn. ‘The Busan announcement represents a unique “win-win-win’ for Renault, Nissan and RSM, demonstrating the flexibility and power of the Alliance for all partners — and I am counting on every RSM employee to contribute to the successful completion of this project,’ he added.

Formed in 1999, the Renault-Nissan Alliance achieved a record 8.03m vehicle sales in 2011 in nearly 200 countries.

RSM is a key asset for French automaker Renault as it increases its industrial footprint and sales volume outside western Europe, particularly in fast-growing Asia-Pacific markets.

Renault, which is expanding significantly outside of its historic core markets, is expected to sell more than 50% of its vehicles outside of Western Europe in 2013, from 43% in 2011 and 37% in 2010.

Renault aims to achieve a 10% market share in Korea, up from 7% in 2011.

As part of the “RSM Revival Plan,” RSM will introduce a new small crossover and the zero-emission SM3 ZE in 2013. RSM’s current lineup includes the SM3 compact, the SM5 midsize sedan, the SM7 large sedan (adapted for China as Renault Talisman) and the QM5 SUV, which is sold as the Renault Koleos outside Korea.

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