PARIS Nov 26 French automaker Renault
is studying the possibility of creating a factory in Venezuela
to increase its production capacity outside struggling Europe.
Renault already has three plants in Latin America - in
Argentina, Brazil and Colombia - as well as six factories in
The Venezuelan industry ministry and Renault have signed a
"letter of intention for the installation of a vehicle assembly
plant", the carmaker said in a statement on Monday.
"This signature will enable a feasibility study for local
production of vehicles," Renault said.
Renault said last week it expected the global auto market to
expand by close to 30 percent by 2020 despite the current
stagnation in Europe.
Like other carmakers facing a slump in sales to European
customers, Renault is trying to tap into emerging markets, where
demand remains stronger, with cheaper models. It already expects
to make half of sales outside Europe this year.
(Reporting by James Regan; Editing by Helen Massy-Beresford)