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Renault launces Sandero in Mercosur
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Sandero, a world vehicle
Sandero marks a new step in the international development of the Renault group. While manufactured and marketed initially in Mercosur, Sandero, like Logan, will ultimately be rolled out worldwide. In 2008, a Dacia version will be produced at the Pitesti plant in Romania for Europe and the Maghreb.
In 2009, Renault Sandero will be built and sold in South Africa. Additional markets are currently under review. A roomy and robust vehicle with dynamic, attractive styling, Sandero will offer customers the interior and exterior dimensions of a vehicle from the top-end of the compact range for the price of a sub-compact model.
Sandero in Mercosur
The design phase Sandero was designed to meet the expectations of active, urban, family customers, such as those in South America. Renault Technologies Americas (RTA), Renault’s regional engineering center based in Brazil (with branches in Colombia, Mexico, Argentina and Chile), was involved right from the start to ensure that the car fulfilled the needs of Mercosur customers.
RTA was also involved in putting Sandero into initial production, and did so while respecting quality, costs and deadlines. Some 50 RTA employees workedwith the Sandero development team at the Technocentre in Guyancourt right from the start of the project in 2005.
They contributed their knowledge of the Curitiba production base and of regional suppliers, based principally in Brazil and Argentina. With a comprehensive regional supplier network, of which 20% are entirely local suppliers, the local sourcing rate will be 88% from the start of production. Producing parts in Mercosur near the assembly site presents numerous advantages. It cuts down on parts transport, and hence logistics costs, and reduces currency effects and customs duties.
RTA also conducted a part of the road trials, which meant that the vehicle could be tested in local driving conditions. At the end of 2006, road trials for the first two vehicles produced at the Curitiba plant were organized in Argentina. These were followed by tests of the try-out models in Brazil. In all, eight Sanderos were driven the equivalent of nearly 500,000 km on all types of South American roads, in cities and on highways, roads (often poorly surfaced) and dirt tracks. These trials were made alongside those at Aubevoye in France, where four vehicles did some 420,000 km.
The project team used all of the RTA engineers’ flex-fuel expertise to adapt engines to the special requirements of the Brazilian market. Sales of flex-fuel engines have grown significantly in Brazil over the last three years. From 20% of the market in 2004, they overtook petrol engines in 2005 to take 80% of the market (total industry volumes, passenger cars) in 2006. Using all the experience acquired in designing Renault’s flex-fuel models, the Brazilian engineers developed a flex-fuel version of the 1.6 8V engine.
Sandero will be available with three flex-fuel engines in Brazil: the 1.0 16V and 1.6 16V units and the 1.6 8V, launched recently on Logan.
Keeping initial outlay down in engineering and manufacturing Sandero entered the Curitiba plant in March 2007 (ENVU – entry of new car into plant) and passed the major milestone of Manufacturing Approval (MA) on September 14, 2007, four weeks ahead of the initial schedule. Manufacturing Approval is granted when the quality level required by Renault and all its suppliers has been achieved, and this triggers production ramp-up.
In all, Renault Brazil invested 372 million euros in the Logan and Sandero projects in Mercosur. Both vehicles were developed on the B0 platform, thus reducing engineering and manufacturing investments. Investments were allocated as follows:
- 149 million euros in design costs, including the adaptation of Logan and the development of Sandero, for the South American markets, and adapting the engines for flex-fuel.
- 223 million euros in industrial investment, including 70 million euros on suppliers' premises for specific tooling. The maximum installed capacity for the B0 platform at Curitiba is 38 vehicles per hour.
The investments made in 2007 at the Curitiba plant were common to both models:
- new press line for stamping mid-sized parts.
- creation of a complete, flexible body shop specifically for the B0 platform,
- creation of a wax shop for anti-corrosion treatment.
The arrival of Logan and Sandero at the Curitiba plant in 2007 is a reflection of the site's flexibility and ensures optimum use of its facilities. A total of 1,000 workers have been hired this year for a second shift at the plant. Ultimately, Logan and Sandero should represent 85% of the site's output (maximum installed capacity of 200,000 vehicles a year), alongside Mégane II, Mégane II estate and Scénic I. The Sandero models produced at the Curitiba plant are for the Mercosur market.
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