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Renault gears up for Chennai plant

Nashik, April 4: Renault president and CEO Carlos Ghosn will head for Chennai tomorrow for talks with chief minister M. Karunanidhi in an attempt to ground the European carmaker’s second car project in the country.

The project has hit a gridlock because land is yet to be acquired.

“We need the land to be acquired by the government (very much like the Tatas’ Singur project). If there’s no land, there’s no plant. We don’t know when it will be ready. So that will be a major topic of discussion with the Tamil Nadu government,” Ghosn told a group of reporters after Maharashtra chief minister Vilasrao Deshmukh formally rolled out the Logan from the Nashik plant.

The Chennai project will make the Logan and its derivatives though this may later be extended to other products in the Renault stable.

“Renault isn’t seeing itself as a prisoner of the Logan platform. There are a number of Renault products that will connect intimately with the Indian consumer,” he added.

Ghosn said the engines for the Logan would also be made at the Chennai factory by 2009 when the second plant is expected to roll out the cars.

There will be another memorandum of understanding (MoU) for this plant involving Renault, M&M and the Tamil Nadu government. Discussions on the terms of engagement, including equity structure, are currently underway.

Ghosn, who is also CEO of Nissan, said the Japanese carmaker would adopt a completely different strategy for Renault in India.

Nissan plans to build a couple of platforms for its small cars in the country.

“Nissan will take a partner — probably an Indian partner,” Ghosn said but indicated the Japanese carmaker would be free to decide who it wanted to go with.

“Just because Renault has Mahindra as a partner, it does not mean that other companies associated with Renault will automatically pick them as well. It might happen but don’t be surprised if it doesn’t,” the Renault boss said.

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