Renault sets high hopes for local factory

ISTANBUL - Reuters

French automaker Renault plans to raise its production in Turkey by 9.3 percent encouraged by the strong demand for its new Clio from both domestic and alternative markets, which can be easily accessed from its Turkish base.

“The Turkish plant will make a record number of 340,000 cars this year, 20,000 short of its capacity,” Carlos Tavares, Renault’s chief operating officer, said at a news conference held during his Turkey visit.

Renault’s joint venture unit Oyak-Renault factory, Turkey’s biggest maker of cars, is producing the Fluence and Clio 4 models at its Bursa plant and manufactured 311,000 units last year. Although the French carmaker doesn’t have any plans for investment in Turkey or the Middle East currently, he said, it hasn’t ruled out the possibility of starting production of light commercial vehicles in Turkey, he said.

Tavares also said Renault doesn’t see any light at the end of tunnel for the deteriorating European car market and is expecting the market to shrink five percent from last year.