Nissan Motor plans to build a new hatchback model at one of alliance partner Renault’s French factories, Les Echos newspaper reported.

Renault and Nissan Europe declined to confirm the report for Reuters. The paper said the new car would be made from 2014 at Flins or Douai and would be sold across Europe.

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Nissan would produce 80,000 of the cars, which have not yet been given a name, per year, Les Echos said, adding that an announcement could come as early as next week.

Renault told unions in talks earlier this week that it could produce an extra 80,000 vehicles a year at its domestic factories for partners Nissan or Daimler if workers agreed to a new labour deal.

Flins currently produces the new Clio and Zoe EV. Douai  is suffering from the decline in sales of Renault’s Scenic model but is due to receive the carmaker’s future mid and high-end ranges.

This would be the first time that Nissan has produced cars in France although it already builds [rebadged Renault] vans there.

The French government, Renault’s biggest shareholder with a 15% stake, has said it wants Renault to support domestic employment by building cars for Nissan, its 43.4%-owned Japanese affiliate, Reuters noted.

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