Renault Scénic

Photo: Renault

Start of production of the Renault Scénic at Nissan's Cuernavaca plant in Mexico is the first instance of joint production by the Renault-Nissan Alliance. Scénic, the first ever compact monospace to be sold in the Mexican market, will be produced by Nissan Mexicana at an initial rate of 6,000 vehicles a year in 2001 and will be marketed by Renault Mexico as of the end of January 2001.

By drawing on Nissan's industrial facilities and commercial back-office, Renault has been able to accelerate its planned comeback to Mexico and lower the cost of the move. The business opportunity brought by Renault allows Nissan to optimize capacity utilization at its Mexican plants, extend its own range of products and strengthen its line of customer services thanks to Renault Crédit International, a Renault subsidiary specialized in financing car sales. This very first industrial and commercial operation carried out by the Alliance thus opens the way to similar operations in other markets with high-growth potential, notably the Mercosur.

The technical content of the well-equipped Scénic produced in Mexico (140 bhp 2.0 litre 16V engine) has been modified to strictly adapt to local conditions: engines adjusted to driving at high altitudes and grades of fuel, heavy-duty suspension systems with longer travel, locks adapted to protect against dust, and so on. The vehicle has also been modified to meet the expectations of Mexican customers.

Along with the Nissan New Sentra, Tsuru, Tsubame station wagon and pickup, the Cuernavaca plant will produce the Renault Scénic at a rate of 6,000 vehicles in the first year starting in 2001.

Total industrial investments planned by both partners for the Alliance project as a whole in Mexico are estimated at US$ 400 million over seven years (1999-2006). At the end of 2001, a second Renault model, Clio, will be produced by Nissan Mexicana in its Aguascalientes plant. Later on, Nissan will assemble a new vehicle, derived from cooperation between the two partners and which it will market under its own brand name.

At the end of January, 2001, Renault's local subsidiary, Renault Mexico, will sell Scénic through its own network of dealers mainly chosen from among Nissan dealers. Clio is planned to go on sale in early 2002. The Renault distribution network, which will be gradually expanded to total some 50 to 60 dealers, will also market a range of imported Renault products.

Renault is aiming to sell approximately 30,000 vehicles a year in Mexico in 2003 and 80,000 a year in the longer term, equivalent to about 6% to 8% of the market. About two thirds of the Renault vehicles sold in Mexico will be produced in Mexico. The production of Scénic and then Clio, for sale in Mexico only in an initial phase, will also enable Renault to strengthen its presence in Central America, the Caribbean and Northern Latin America in the medium term.

Nissan has a manufacturing base in Mexico consisting of the Cuernavaca and Aguascalientes plants and they will be capable of producing 400,000 vehicles a year by 2003. Nissan has a 20% market share in Mexico and sold 135,000 vehicles in 1999. Nissan Mexicana is planning to export 170,000 vehicles in 2000.

(Dec. 6, 2000)