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Renault's off-road attack
Page 28
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• Renault has confirmed that it has signed a deal with Chrysler to develop an "all-terrain" vehicle, code named JJ, for production before July 1992.
The vehicle will be built in two factories: one in North America, where Chrysler will have selling rights, and the other in Europe, where Renault will have the selling rights in France, Italy, Spain, and Portugal. They will compete for sales in other countries.
The European market for leisure 4x4 vehicles has doubled during the past five years to 420,000 vehicles a year. This has encouraged Renault back into the market after selling its US subsidiary, AMC, to Chrysler in 1987, while remaining as a distributor for Jeep vehicles. Chrysler has also been looking for an opportunity in the European 4x4 market since it sold its factories and names to the Peugeot group in 1978. It was interested in buying Land Rover when the Government held talks on selling the Solihull 4x4 manufacturer in 1986.
Other manufacturers that have been tempted to combine, and enter the 4x4 market include: Nissan and Ford, with a leisure 4x4 based on the Nissan Pathfinder; Toyota and Volkswagen, who are already producing pickups in Hanover; and Isuzu and Bedford (General Motors), with tentative plans to build a leisure vehicle at Luton. There is also the possibility of a Japanese electronics giant entering the market.