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    Default renault coming to pakistan

    hey does anyone know that renault boss visited pakistan and going to set up plant for the renault laguna in pakistan and the plant will export parts to most of the counrys wher they sell ranult laguna


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    Its the Logan.Available in a 1.3,1.5 and 1.5 diesle varient. Good lookin machine.
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    The last time I heard about Renault's plans of setting up a manufacturing base in Pakistan was this news item:

    ISLAMABAD, May 3: A French auto business delegation, currently on a visit to explore opportunities and possibilities to invest in Pakistan, held a meeting with Privatization and Investment Minister Dr Abdul Hafeez Sheikh here on Tuesday. According to a handout, the minister said that Pakistan was trying hard to promote and further strengthen the existing relations with France. “There is a lot of scope for French business groups to invest in various sectors of the economy, particularly in the auto mobile industry, where our domestic production has increased and we were experiencing shortage while the companies engaged in the sector were making huge profit,” he said.

    The minister said Pakistan offered equal opportunities to both local and foreign investors in all sectors of the economy without any discrimination and restriction on equity or its repatriation.

    Earlier, the delegation members, Luc-Alexandre Menard, senior vice-president of the International Division, Renault, Sylvain Bilaine, designate representative of Renault Plant in Pakistan, accompanied by Francoise Maylie, deputy head of the French mission to Pakistan, while appreciating economic and investment policies of Pakistan said that normalization of relations with India was anew and historic chapter toward the progress and stability in the South Asia region.

    Elucidating the investment plan by the group, they said that Renault intended to introduce Renault Logan in the Pakistani market by establishing the assembling plant of Logan Car in Pakistan with a production capacity of 15,000 automobiles per year and creating a pole of excellence allowing export of car components from Pakistan to all Renault factories related to this particular type of vehicle.

    The project will attract an investment of 40 million euros with 600 job opportunities. The worldwide production of Logan will be l.2 million cars by the year 2010.

    [Dawn, May 04, 2005]
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    Renault plans 40m euro production plant

    ISLAMABAD: French Renault has planned to introduce Renault Logan in the Pakistani market by establishing a 40-million-euro assembling plant of Logan cars in the country, with the production capacity of 15,000 automobiles per year.

    A French auto business delegation, currently on a visit to Pakistan to explore opportunities to invest in Pakistan, revealed this at a meeting with Dr Abdul Hafeez Shaikh, federal minister for privatisation and investment, on Tuesday, said an official statement.

    The delegation comprising Luc-Alexandre Menard, senior vice-president international division Renault, Sylvain Bilaine, designate representative of Renault plant in Pakistan accompanied by Francoise Maylie, deputy head of French Mission to Pakistan, appreciated the economic and investment policies of Pakistan.

    They said the planned project would attract 40 million euros’ investment and create 600 job opportunities, which would increase the worldwide production of Logan cars to 1.2 million by the year 2010. The delegates said the French auto giant was interested in creating a pole of excellence, allowing the export of car components from Pakistan to all Renault factories related to that particular type of vehicle.

    The Renault officials appreciated the economic and investment policies of Pakistan and said the enhanced relations with India was a new and historic chapter towards progress and stability in the South Asia region.

    Earlier, the federal minister briefed the French delegates, saying that Pakistan was trying hard to promote and strengthen its relations with France. He said there was a lot of scope for French business groups to invest in various sectors of the economy, particularly in the automobile industry.

    “Our domestic production has increased and we were experiencing a shortage while the companies engaged in the sector were making huge mark-up,” the statement quoted him as saying. staff report

    [Daily Times, May 04, 2005]
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    Well a delegation of Renault visited last week only to realize that the ministry people had messed up and their meeting was not scheduled. The ministry people were not available. Renault delegation left in disgust the same day for France w/o holding any meetings. So I don't think Renault will be coming to Pakistan in near future.

    Disclaimer!!!: This might not be a true, it has not been reported anywhere. I heard this from a french embassy official.

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    Renault is a world renowned auto maker and has produced splendid models . Then they took a lead from Japanese auto makers. Japanese are making splendid cars for europe, japanese and north american marker, but are selling crap like alto etc like hot cakes in south asian, far eastren and african markets. They are also going to do the same here in India and Pakistan. Thay have acquired some old plants from east Europe countries like Romania , Czech Rebuplik etc. These are non automated labour intensive facilities and will produce cars that will in no way meet European standards but will be offered to Pakistan in the name of Renault. It will have a single piece molded molded dash board like that of Suzuki Alto. Whereas a top of the line Renault has 35 piece molded dash in Europe. I wish we should not allow Renault to come to Pakistan with substandard manufacturing facility. Remeber what Fiat offered you in the name of Uno. The most dusgusting vehicle ever designed. In other countries Fiat is producing Palio, Seiarra, Weekend and Micheal Schumaker models for them on TV ads. Palio is given the award of most fashionable car in China. And we get Uno. Gov should ensure that all investors must introduce state of the art technology in our country other wise leave us to our Revo. I assure you that if Gov do not allow them to enter with substandard products, they will introduce good models like Renault Picaso etc.
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    Whatever is mentioned by Mics420 is all truth, every manufacturer takes pakistan for a ride and give us junk. japanese were the first ones so they are most visible. even koreans are sticking to old technology for pakistan.
    e.g. why cant we have a common rail diesel engine from anyone in a sedan or in a small car?
    we always get underpower vehicles which are not economical in the long run?
    It will be a pity if Renault also did the same to us.
    Keep a cool head and wear seatbelts!

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    mics420 you have a valid point. Many Multinational automakers do take advantage of any country as long as you let them. But, its not just upto government official to make strict policies alone, individuals must realize where its all leading to. Do not buy substandard vehicles of another country. The best way to go is to develop your own country's car industry. The only company that will have national interest in mind and hense offer the world class vehicles will be in " equal collaboration (China style) not monopolistic way(like Toyota, Suzuki in Pakistan)" with foreign automakers.
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    @ datzburier and spectra i think renault would be good in pakistan be cause its very big company (unlike suzuki) and they are strict about their qulity isues.

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    the best cars in the world are made in europe and it is really great to hear that the pakistan market is finally going to see the european masterpieces..
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    well exactly its not a european masterpiece but european cars are always beter then japenese cars.

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    Some body mentioned Renault delegation came last week but no one was available from ministry to see them, if its in my hands I would be firing all of them. I give you a recent example Toyota recently announced their 7th manufacturing plant in north America before the announcement came there was stiff competition between US and Canada to win this $800 million investment, Canadian prime minister visit al the way to Japan to see Toyota chairman to make up his mind to set up a plant in Canada and offered him every cooperation, as a result now they announced to set up plant in Canada and will be in production beginning of 2008 creating 1500 direct jobs and 6000 indirect jobs. I don’t’ know what kind of people are sitting in our ministries who are just sucking this country for decades.
    Now some of you said Gov should not allow them to set up old non automated plants in Pakistan, my friends some thing is always better then nothing, automotive assembly can’t be 100% automated, its impossible. Also if automaker wants to set up manual assembly line its may be due to reason that labor is quite cheap in Pakistan, a simple assembler in a car plant who just shoots a bolt and nut makes on average starts $30/hr. this is the reason there is so much atomization in west but it can only to a certain level. Robot can’t pick up part from bin on flow rack and install it on to car you need humans for it.

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    Automation is two headed serpant. With one it reduces the laboue cost and with the otherit ensure repeatability of high standard production. My mentionaing of nonautomated plant is more inclind towards the latter. In the absence of high technology the industry cannot take-off. Renault just want too use our cheap labour to use welding guns, and sheet molding press to roll out substandard cars like another European Giant Fiat which has produced a master piece Uno. If cheap labur in China, S.Korea, Taiwan can be used by international giants to produce state of the art laptops, cameras, LCD TVs, cars then why our cheap labour is breaking stones in UAE. We must demand best techology from foriegn investors. If we have to provide them cheap labour than in turn we must get transfer of technology. We should not settle for something which is better than nothing. We must demand the BEST. In my humble opinion we should attarct foriegn investment in high technology rather than in what is already present. A cheap substandard suzuki or renault, its same for us. The profit goes to investors and we get a few hundered jobs and no qualitative enhancement in existing infrastrucuture
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    Any of you ever worked in automotive manufacturing or have any idea how a car or part assembly line operates, I doubt probably none of you.
    Secondly my friends beggers can't be choosers, we donot have any technology of ours, its all foreign even atomic. so accept what you get and then develop your own. A phrase of urdu is coming to my mind right now which applies here perfect " NA NO MAN TEL HO GA OR NA RADHA NACHEY GI" so MERA BHAI JITNA TEL RADHA KEY PASS HAI USI MEIN US KO NACHNEY DO. If Renault saying they want to install non automated plant why not at least people will get jobs, our educated youth wil not be ruined. economy will get better and its always room for improvement. IF these bif automakers can build plants in china, India and Korea b/c of cheap labor why not Pakistan. And one last thing repatibility and reproducibilty can also be achieved with proper man power training and skill development.

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    One more thing some one talked about transfer of technology, what do you mean by this? if by this you mean design of their product so I tell you not even in your dreams buddy. In automotive business design documents are always top secret documents and not every one has access to it even with in company, we make parts for Toyota, Honda, Gm chrysler we donot show them all design details of parts b/c its a properietership and design is developed by us not auto assembler, auto assembler just tell vendor a concept and then vendor develops technology based on their requirements. not suppose to share every detail. so is the case of auto assemblers in pakistan. deletion is some thing different it means source out locally even in this case it all depends what kind of capability local vendors has.

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    Yeah, I very much agree with you abhatti. All the foreign investors should be welcomed with open arms. If not, they will build their plants in some other contries.
    We should remember that one of the main drivers of China's rapid economic development is the huge inflows of foreign investment that it receives every year, much more than any other country in the world.
    As far as transfer of technology is concerned, though it does not necessarily mean designing vehicles, but some auto companies are even establishing designing and R&D centers in developing countries. Like Hyundai has established an R&D center in India. And the involvement of Indian engineers in the design of new Suzuki Swift got a lot of coverage recently. There must be many other examples in case of China as well. Moreover, as a result of JVs with local companies, the local companies eventually acquire the ability to design their own vehicles. For example, Hyundai kept assembling Ford vehicles for long before introducing their own vehicles. The first Proton cars were replicas of Mitsubishi Lancer and many other such examples.
    Even if the designing capability is not transferred, many new parts come to be produced locally for the first time as a result of deletion.
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    The thoughts and ideas emanating from the above discussion shows u guys r true patriots. However, the on ground reality is that Pakistani labour is the most expensive, least skilled & with the worst working attitude within all the countries of South Asia. Indian, Bangladeshi & even Sri Lankan workforce is more skilled & qualified than Pakistani labourers. Tell me, if u guys own a car manufacturing country, where would u invest? A country with little political stability, red-tapism, unskilled/ illiterate workforce, expensive utilities(electricity, gas, water, telecomm) or a country with skilled & educated workforce, cheap utilities & political stability. Naturally the 2nd option. That option points towards our neighbours.
    And talking about transfer of tecnology i agree with abhatti. Technology is never transferred/ given away. It is always bought, copied or stolen. It is never handed over to a country/ individual on a tray as our Gov thinks. Muftay ka. I Renault is thinking of investing here then welcome but i think they must have just been in the country to look things over and will probably head over to India or China. I'm not being un-patriotic but realistic. Anyone care to comment?

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