Renault Ready for a Break-off?

Thursday 22 October 2009, 00:00 AM by Satish Kalepu

It is rumoured that Renault is ready for a break-off with one of its JV partners in India. According to the rumors doing rounds in the Indian auto industry, the most likely partnership to see the annulment is JV between Mahindra and Mahindra and Renault. M&M and Renault jointly produce Logan which is an entry level model sedan in India. The model has been witnessing continuous slump in its sales which further puts a question mark on the joint venture between the two companies.

Renault currently has three partners in India. It has alliance with Bajaj together with Nissan to produce ultra cheap car that is supposed to compete with Tata Nano. It also has a joint venture with Ashok Leyland through sister co. Nissan to produce light commercial vehicles.

"I am not saying we will, I am saying we can. I don't want anybody to be surprised. We have today three partners (in India),” said Renault Chairman and CEO Carlos Ghosn at the Tokyo Auto Show that began in Chiba near Tokyo today. He was answering the press to the queries put forward for the poor performance of Logan in India.

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