Renault-Nissan will build a new factory in Brazil as part of its plans to double its market share in the country by 2016.

The new facility near Rio de Janeiro will produce Nissan vehicles, the French-Japanese partnership's chairman and chief executive Carlos Ghosn said.

In addition, the company plans to expand an existing plant in Sao Jose dos Pinhais that makes Renault models and assembles Nissan pickups and trucks.

"We expect Brazil to become the number two market for Renault after France," Ghosn said at a press conference, reports Reuters.

"For Nissan we expect this to help us increase our presence in one of the world's most important markets."

He also indicated that the company would source 65 per cent of components locally to avoid a tax hike imposed to stop a flood of foreign imports.

Ghosn also suggested that the new plant could build electric vehicles, though details of the investment plans are scant at this stage.

Source:

Renault-Nissan to build new Brazil car plant-Ghosn (01/10/11)

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