Mister79
September 14th, 2007, 02:58 PM
Algeria calls for explanation after Renault plant snub - report
09.14.07, 3:37 AM ET
PARIS (Thomson Financial) - Algeria is calling for the French government to explain Renault's decision to locate a vehicle assembly plant in Morocco, La Tribune reported, citing unnamed sources.
The announcement of the decision to locate the joint Renault (other-otc: RNSDY.PK - news - people )-Nissan (nasdaq: NSANY - news - people ) plant in Morocco came in the midst of preparations by French President Nicolas Sarkozy for a visit to Algeria in December, the paper said.
Last year, as part of a drive to boost the economic cooperation, Algeria and France agreed to jointly develop three key sectors - farm produce, medication and automobile.
'Ever since Renault opted for Morocco to set up its assembly plant, discussions on the automobile section have been difficult,' a source said.
According to the paper, the Algerian authorities say Renault occupies the top spot in the 1 bln eur Algerian market, the most important in North Africa.
The paper said the Renault announcement came just days after the Algerian government said it was abandoning a plan to build a joint car factory with Fiat (nyse: FIA - news - people ) in Tiaret.
A preliminary agreement for Renault's project that was signed with the Moroccan government is expected to be formalised by the end of the year.
http://www.forbes.com/markets/feeds/afx/2007/09/14/afx4117125.html
09.14.07, 3:37 AM ET
PARIS (Thomson Financial) - Algeria is calling for the French government to explain Renault's decision to locate a vehicle assembly plant in Morocco, La Tribune reported, citing unnamed sources.
The announcement of the decision to locate the joint Renault (other-otc: RNSDY.PK - news - people )-Nissan (nasdaq: NSANY - news - people ) plant in Morocco came in the midst of preparations by French President Nicolas Sarkozy for a visit to Algeria in December, the paper said.
Last year, as part of a drive to boost the economic cooperation, Algeria and France agreed to jointly develop three key sectors - farm produce, medication and automobile.
'Ever since Renault opted for Morocco to set up its assembly plant, discussions on the automobile section have been difficult,' a source said.
According to the paper, the Algerian authorities say Renault occupies the top spot in the 1 bln eur Algerian market, the most important in North Africa.
The paper said the Renault announcement came just days after the Algerian government said it was abandoning a plan to build a joint car factory with Fiat (nyse: FIA - news - people ) in Tiaret.
A preliminary agreement for Renault's project that was signed with the Moroccan government is expected to be formalised by the end of the year.
http://www.forbes.com/markets/feeds/afx/2007/09/14/afx4117125.html