Renault to gradually resume production in Morocco plants
Renault has closed the two plants last month amid a global shutdown due to the consequences of the coronavirus, which disrupted supply of vehicle parts and demand for cars.
The carmaker said its factories will start rolling up as of end of April as it put in place strict counter-coronavirus measures to protect its staff.
The company said it will maintain jobs of 12,000 people working in its Morocco plants.
The investment by Renault and the other French car manufacturer PSA helped attract a network of car suppliers creating clusters in Tangier and Kenitra.
The automotive sector topped Morocco’s sales with 27% of total exports in 2020.
Jobs created in the automotive sector reached 116,000 by mid-2019, while the part of locally produced parts in Renault and PSA cars stand at an average of 50% with the goal of bringing that rate to 65% in 2020.
Morocco unseated South Africa last year from the top of the podium of African car producers.
PSA plans to produce 100,000 cars in its Kenitra factory, with a goal of reaching a production of 200,000 cars annually, while Renault, which is now producing 12% of its cars globally in its Tangier factory, expects to produce 500,000 in its Tangier and Casablanca plants.
However, the impact of the coronavirus cast a shadow of uncertainty over the global car industry as demand for cars decline.