Towards the closure of the Renault plant in Algiers?

Renault’s plant in Algiers, which has been facing multiple problems for more than two years, is in danger of closing. This was announced on Wednesday, May 11, 2022, by the French magazine L’Argus, citing an analysis of the company. INOVEVspecializing in the automotive industry.

The automotive sector around the world has been hit hard by the war in Ukraine. The shortage of raw materials, combined with rising energy prices, has led to the fact that most car factories are idle. The Ukrainian crisis also prompted manufacturer Renault to permanently stop production in Russia.

The Renault plant in Algiers is no better. Opened in 2014, the Renault assembly plant, located in Oued Tlelat in Oran province, was hit by the first crisis in January 2020. Following the Algerian government’s decision to ban the import of SKD/CKD kits and cancel the tax breaks granted to Algerian-based manufacturers, Renault management decided to suspend production and close the Oran plant.

Will Renault close its plant in Algiers?

A decision that did not come without consequences for the many Algerian customers who found themselves unable to return their vehicles despite having booked them. Two years later, on January 22, 2022, Renault Algeria announced the partial resumption of car production at its plant located in Oran.

However, this partial takeover by Renault Algeria concerned the production of 4,500 new cars of 3 brands: Symbol, Clio and Sandero. These 4,500 units correspond to the number of assembly kits (CKD-SKD) that were in the port of Oran and cleared by the Algerian authorities in favor of Renault Algeria. The 4,500 vehicles were primarily intended for customers who had already placed an order.

The Renault plant in Algiers, which has been idle for more than two years, has not been able to reach the targets achieved between 2015 and 2020, namely a production capacity of 50,000 vehicles per year. Faced with this situation, the information reports Renault’s decision to withdraw from its project in Algeria and sell its factory located in Oran.

Indeed, in its latest monthly analysis, cited on May 11 by L’Argus magazine, the automotive specialist INOVEV said that Renault could sell its Algerian plant. “The Oran plant falls far short of the manufacturer’s goals as it no longer manages to get close to the production target of 75,000 vehicles per year based on the response to local demand, which was affected at the time by the production stoppage. car imports,” the same source explains.

Renault denies intention to leave Algeria

The Renault manufacturer, which has always favored its site in Tangier, Morocco, may have misunderstood the Algerian government’s attitude towards its “screwdriver” plant in Oran, says INOVEV, which noted that in 2021 the French manufacturer decided to transfer production of the Dacia Logan brand from the plant in Oran to the factory in Tangier, Morocco.

However, the French manufacturer insisted on refuting INOVEV’s information about the closure of the plant in Oran. “In fact, assembly volumes are still very low, but by no means have we announced that we are going to leave Algeria, which remains an important market for Renault,” Renault told L’Argus magazine. The latter claims that the French group is “continuing negotiations with the Algerian government to rectify this situation.”