Renault-Nissan realigns Chennai investment

India’s Renault-Nissan alliance said its plans for the upcoming Chennai car plant “have been realigned due to the economic and financial crisis.” However, it added this was a “temporary realignment” and that the Renault-Nissan alliance will honor its long-term commitments. Nissan and Renault initially had planned to invest a total of Rs4,500 crore (US$941 million) till 2015 in the Chennai plant, which will have a capacity of four lakh (400,000) units, to be equally shared by the two companies. The alliance has decided to cut back their investment in the plant by US$165.69 million in view of the uncertain economic situation. (December 10, 2008)