Renault moves Megane production to Brazil

Renault SA announces it will begin building its Megane model at its factory in Sao Jose dos Pinhais, in greater Curitiba, Parana. This will be the company's fourth model assembled in Brazil. Megane was Renault's third best-selling car in South America last year, behind the Clio and Scenic, selling 6,000 units, up by more than 30% from prior year. The car currently is being manufactured and assembled in Argentina, where it was responsible for 60% of the company's production. However, in the first four months of 2001, production fell to 2,800 units, compared to 5,300 in the same period last year, due to a lingering economic crisis. Megane production will continue in Cordoba, Argentina, but Renault will shift the bulk of production to Brazil.