Renault-Nissan to invest $202 million in S. Korea unit
SEOUL (AFP) - The Renault-Nissan Alliance said on Friday it will invest US$160 million (S$202 million) to roll out Nissan models at its South Korean unit, with analysts saying it would gain from a weak won and recent free trade deals.
The unit, named Renault-Samsung Motors, in the southern port of Busan will produce an annual 80,000 units of Nissan's crossover sport utility vehicle (SUV) Rogue, beginning in 2014, the French-Japanese firm said in a statement.
'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 (CEO) Carlos Ghosn.
The move comes as Renault-Samsung suffers from plunging sales owing to a lack of new models and stiff competition from South Korea's dominant Hyundai-Kia group as well as imported brands.