Renault CEO meets premier over setting up in Morocco

Chief Executive of the French group Renault, Louis Shweitzer, met here Wednesday Moroccan prime minister, Driss Jettou, on the setting up of the group in the north African.

The Moroccan government last July sold 3% of the state's shares in the national carmaker SOMACA for 95 million dirhams (some $10 million). Renault will buy another 26% of SOMACA's capital by next September and the remaining 12% by October 2005.

Renault, which already owned 8% of Somaca capital through its Morocco affiliate, now possesses 46%. The other shareholders are Italy's Fiat auto and French Peugeot which hold each 20% of SOMACA capital and private investors (14%).

The Moroccan state and Renault also agreed that Renault will start assembling in SOMACA starting end of 2005 the L90 car, a family and economical car destined for the domestic market and exportation.

After the meeting, the French executive told the press Renault will not only make of Somaca a privileged car supplier in Morocco, but also an exporting firm." Renault's new L90, to be built by Somaca, will require the French group a Euro 22 million investment. It will be followed by other important operations, depending however on the success of the L90, he said.