TASS – Renault-Nissan CEO Carlos Ghosn has stated that due to the devaluation of the rouble, the company intends to speed up localisation in Russia and halt the projects of models with complicated production processes.
Ghosn has said the following: “While you are ready to manufacture at a certain level, suddenly the market shrinks by 10%, obliging you to revise your plans. In this case, you need to adjust your costs in accordance with the new realities. The collapse of the local currency is another factor. The rouble has devalued by 40% during the course of the year. You can not deny this fact. We are obliged to increase the localisation rate even further and as fast as possible. Moreover, we have to give up several models and technologies, which require complicated production processes.”
Moscow based Renault Russia is the factory with the highest rate of localisation amongst the foreign manufacturers with 75%, as of the beginning of 2014. The rate at St. Petersburg Nissan factory is 39%. The factory plans to increase this rate to 45% as soon as possible.
