Tags: EU | France | Renault

Renault Pressured to Keep Clio Plants in France

Wednesday, 13 Jan 2010 12:31 PM

French carmaker Renault SA came under mounting government pressure Wednesday to keep production of the next generation of its popular Clio small cars in France.

Renault is studying the possibility of dividing production of the Clio 4 between plants in France and Turkey.

Industry Minister Christian Estrosi said he had informed Renault Chief Operating Officer Patrick Pelata during a meeting Wednesday that the government, which owns 15 percent of Renalut, would oppose any shift of Clio production out of France.

Renault currently makes different versions of the Clio in France, Turkey, Spain and Slovenia, but it is considering stopping production in Spain and Slovenia sometime around 2013.

"I made Mr. Pelata understand clearly, in a perfectly polite way, that we are not in favor of the future Clio 4 being produced abroad, at least the part of production destined for the French market," Estrosi told reporters following the meeting.

"We can't just stand by with our hands in our pockets" and watch Renault shift production abroad, Estrosi said, citing the billions of euros (dollars) that the French government provided both Renault and rival PSA Peugeot Citroen to prop them up during the global financial crisis, as well as the hundreds of millions of euros the government spent on a scrapping scheme to boost demand for their cars.

To hammer home the point, Renault boss Carlos Ghosn also has been asked to meet in the coming days with French President Nicolas Sarkozy, Estrosi said.

On his way out of the meeting, Pelata told reporters that "no decision has been made" on where Renault will build the Clio 4, the next generation of its Clio range, due to be launched in 2013.

Pelata said Renault was studying "different scenarios" on how to divide up production of the Clio and its replacement between a plant in France and one in Turkey.

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French carmaker Renault SA came under mounting government pressure Wednesday to keep production of the next generation of its popular Clio small cars in France.Renault is studying the possibility of dividing production of the Clio 4 between plants in France and...
EU,France,Renault
308
2010-31-13
 

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