Renault Nissan not happy with Bajaj Auto

Saturday 10 March 2012, 11:04 AM by

The future of the strategic alliance between Renault-Nissan and Bajaj Auto Ltd. for a low-cost car seems to be dark as the Franco-Japanese alliance is not giving any positive indications. It has been officially declared by Renault Nissan that the company has not taken any decision yet to move ahead with the RE60 model developed by Bajaj.

In 2010, the two groups entered into a partnership, wherein a low cost model will be developed by Bajaj to compete against Delhi Auto Expo 2012, Bajaj displayed the RE60 model and categorised it as a four wheeler. According to the third-largest two-wheeler manufacturer, RE60 would be a perfect substitute for three wheelers across the globe.

Carlos Ghosn, chairman and CEO, Renault-Nissan, said, “We have not taken a decision yet whether we would like to sell the car or not.” He further added, “Our executives are looking at the product closely and I cannot give you a time frame (when) we would be ready with a decision. This vehicle is intended to be a low-cost model for people driving a car for the first time. We are not looking at conformity but it has to be a car.”

Bajaj has provided a 200 cc rear mounted engine in the RE60, which helps it attain top speed of 70 kmph. The car is capable of delivering astounding fuel economy of 35 kmpl. As per reports, Bajaj will be manufacturing the compact car at its Aurangabad plant.

In an official statement to reporters, senior official from the Renault Nissan alliance said that it is doubtful that the company will market the RE60. He further added, “We were very clear that we would not interfere with the development of the product and would restrict ourselves to the marketing and sales aspects. On the face of it, this is not a vehicle we would like to sell alongside our own cars.”

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