Turkish-made Clio to save Renault EUR 1 billion in production costs
Hurriyet - French car manufacturer Renault’s decision to produce its new supermini in its Turkish plant will save the company nearly EUR 1 billion in production costs as the Turkish-made unit will cost considerably less than the French-made one. The model to enter production in June in Renault’s Bursa plant in Turkey and Flins plant in France had caused intense debate in Paris, which insisted on local production, whereas Renault favored Turkey for its high-quality production at lower costs. The company later divided the assembly of the car between Bursa and Flins, with the majority of the operation going to the French plant.
In a presentation to the French Parliament, Chief Operating Officer for Renault, Carlos Tavares said that the high cost of manufacturing in France was eroding the company’s competitiveness as the cost difference between the Turkish and French manufactured versions of the Clio 4 was around EUR 1,300, a sizeable amount for a supermini class car. For the total of 160,000 cars per year, Renault’s Bursa plant will save the company EUR 280 million annually when compared with the French factory. Clio 4 production in Bursa will reach 160,000 vehicles per year, cutting costs by as much as EUR 1 billion for the three or more years that the model will remain in production.
Renault invested over EUR 200 million in its Turkish plant for the production of the Clio 4. The model will hit the markets after its premiere at this year’s Paris Auto Show in September.