Renault was at midday Monday not ruling out transferring more production of its Clio range to Turkey, as speculation continued to grow over the weekend and earlier today over the future of its French and Turkish plants.
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The automaker’s chairman and CEO, Carlos Ghosn, met French president Nicolas Sarkozy at the weekend to discuss the split of Clio production between Renault’s factories in Flins, France and Bursa, Turkey.
Renault insisted there would be no impact on employment, should Clio production be reduced or end in France, as that work could be replaced after Zoe electric vehicle production begins in 2012.
“We have always said we will [make] the Clio in Flins until Zoe completely fills the plant,” a Paris-based Renault spokeswoman told just-auto on Monday. “We have different scenarios, but if somebody can tell us today how successful this will be, that would be great.
“One of the scenarios that we agreed with the French government is to have [Clio] 3 and 4 made in Flins but, today, not guarantee any volume. This depends on the success of Zoe.”
“We have said from the start we will do our Clio 3 and 4 at Flins, but one day in 2015 or 2017, if electric vehicles have filled Flins, there will not be Clios there. In that case, production of Clio could transfer to Turkey or elsewhere.”
Renault has secured substantial loans from the French government totalling EUR3bn (US$4.3bn), although the spokeswoman stressed this was at at an interest rate of 6%.
However, the weekend meeting did not appear to cast any further light on a future production split between France and the lower-wage economy of Turkey.
“No decision had been taken concerning the production location of the next Clio in 2013,” said Ghosn, adding: “I confirmed to the French president we would produce the Clio 4 in Flins, with a double sourcing in Bursa, Turkey.” He stressed Zoe would also be produced in France.
“The future of the Flins plant is guaranteed and employment will be maintained at term.”
A statement from the French president’s office noted Renault’s commitment to employment levels in France with both internal combustion and electric vehicles, but did not address any potential shift of production to Turkey.
The French state holds a 15% stake in Renault and has provided the company with EUR100m in soft loans for electric vehicle development, as well as a EUR70m loan for battery production.
“The state shareholder fully supports the Renault strategy of developing high added value products and investment in the non-carbon vehicles of the future,” added the president’s office.
“It has also decided to set up a working group including manufacturers, equipment makers and component suppliers to have better collaboration at the heart of the automotive industry.”
A Competition Commission spokeswoman in Brussels told just-auto there “had been some correspondence” between her organisation and French officials today. Details would be released later.
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