Renault Increasing Engine Output in Brazil

Renault is boosting the capacity of its engine plant in Brazil 25% to 500,000 units annually between now and 2013 to meet a planned increase in vehicle production.

The facility, opened in 1999 at the Ayrton Senna production site in Curitiba, will be increased in size by 53,819 sq.-ft. (5,000 sq.-m) to allow for the added production.

Renault also has a car plant and a light-commercial-vehicle operation at the complex.

Annual vehicle production now is more than 280,000 units, but Renault CEO Carlos Ghosn announced last October output would be boosted by 100,000 units a year beginning early 2013.

Renault says in a statement the engine plant has built almost 2.5 million engines since it opened, including 335,813 last year. Some 1.2 million of the engines have been exported to other South American markets.

Renault says Brazil, the group’s No.2 market, is a key pillar in its international expansion strategy. Thanks to the success of its Duster SUV and Sandero entry-level hatchback, it raised its first-half market share to a record 6.8% and is targeting an 8% share by 2016.