Renault buys more shares in Moroccan branch

French car-maker Renault has increased its shares in the capital of its Moroccan branch from 50% to 80% and bought over SIAB, the exclusive importer of Nissan vehicles in Morocco.

A Renault statement released in Paris did not specify the amount of the deal but explains that it is consolidating its presence in Morocco, where the Renault brand took the lead of vehicle sales up to end August. The source also expects Nissan to record a considerable increase of its sales.

SNI, an affiliate of Moroccan corporation ONA, held 50% of Renault-Maroc shares. ONA also held 100% of SIAB capital.

Renault seeks to mark its confidence in the Moroccan economy and its will to develop the brand in the Maghreb, says the release which announces that ONA and Renault are also studying new cooperation in car-associated sectors.

Renault, which has been present in Morocco since 1928, is the leader brand in 2000, holding 27.4% of the Moroccan market shares with a volume of sells of 12,000 new vehicles assembled in by the Moroccan car-making company SOMACA.

Nissan operates in Morocco since the 60's. In 1970, it passed an exclusive distribution agreement with SIAV, an affiliate of ONA and in 1999, it sold over 9,000 units, holding 2.1% of the Moroccan market. The new deal helps Nissan target to reach 5% of the national market in 2005.