The project to make a new low-cost car in Morocco by the local car-assembling company (SOMACA) would help reviving the kingdom's car industry, said CEO of SOMACA, Larbi Belarbi.
The executive said during an interview with the Moroccan news website menara.ma that following the privatisation of SOMACA last June, French Renault bought over 36% of state shares. Fiat, which made and marketed three brands of cheap cars in Morocco, halted its production in December 2003 and SOMACA is presently in a stage of transition and preparation to launch the cheap L-90 in July 2005, he conveyed.
SOMACA, which will produce an initial 15,000 units of the cheap car, before reaching 90,000 cars, plans to export half of its production. The L-90 was officially showcased on Wednesday in Paris.
The Logan is being built by Dacia, the loss-making Romanian unit being revamped by the French firm, and will be sold under the Renault and Dacia brands, depending on the region.
Despite the 35% decline in the production volume entailed by the halt in Fiat’s industrial activities, SOMACA did not conduct any layoff and maintained the salary advantages, Belarbi disclosed. (menareport.com)
© 2004 Mena Report (www.menareport.com)
