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Morocco World News with Maghreb Intelligence
Rabat, December 22, 2012
According to some sources, the announcement of the future installation of a factory of French manufacturer Renault in Oran looks more like a consolation prize than a true strategic investment. Indeed, the Algerians have been pressuring the French government for 7 years so that one of the two automakers of the country installs a factory in Algeria.
The announcement made by Renault-Nissan to establish a mega factory, capable of producing up to 370,000 cars a year, not far from the Tanger-Med port in Morocco had set fire to the powder between the governments of two countries.
Algiers wanted its own factory to be like that of the Moroccan Kingdom. As Peugeot is facing a series of difficulties, it is ultimately Renault, which sells more than 100,000 vehicles annually in Algeria, that agreed to go and invest in Algeria.
However, the French manufacturer has forced the Algerians to drop the site of Jijel, which was completely inadequate, and opt for Oran, closer to Spanish and French OEMs. In addition, Renault takes very little risk, since the size of the factory will be quite average, with a production of 25,000 vehicles at startup, and will also be the result of a joint venture with the Algerian State, which will hold 51% against 49% for Renault.
If Oran’s factory is a far cry from what the Algerians hoped, their honor is still intact, since they can finally claim to be the second country in the Maghreb to have an automotive industry.
