Renault's Clio cheaper to produce in Turkey

ISTANBUL-Hürriyet Daily News

This photo shows the latest Renault Clio 4 model, which will begin to be produced this summer in Renault’s Bursa factory in northwestern Turkey.

Renault General Manager Carlos Tavares has told the French Parliament’s Economic Commission that the company’s Clio model was 1,300 euros cheaper to produce in its Bursa factory in Turkey than the Flins factory in France, according to daily Milliyet.

“Production costs in France are becoming more expensive every day. The price wars over compact cars are causing profit margins for European cars to completely erode,” said Tavares in his speech to
Parliament. French PSA Peugeot-Citroen Group Industrial Operations Vice President Denis Martin told daily Milliyet that French factories were no longer competitive because their production costs are too high compared to those in developing countries. Both Renault and the PSA Group want a financial support package from the French government.

Meanwhile, Renault has given the green light for the production of the Clio 4 model at Turkey’s Bursa factory, starting in June. The factory will produce 160,000 Clio 4 vehicles annually and Renault anticipates breaking even on its 200 million euro investment in Bursa in one year.