With overcapacity being a major issue for most carmakers in Europe, Renault has managed to reach an agreement with alliance partner Nissan that will allow its Flins plant, located near Paris, to produce the next-generation Nissan Micra.

Production will begin in 2016 at an estimated annual output of 82,000 vehicles. According to Renault’s statement, it was Nissan that requested it to build the next-generation Micra in Europe at one of its plants.

Renault’s decision was to assign the production to the Flins plant, the largest factory it owns in France, which also makes the Clio supermini. The company’s decision also came as a consequence of the new labor agreements reached with its union representatives. Entitled “Contract for new growth and social development of Renault in France,” the new agreement was signed on March 13 and allows Renault to increase the competitiveness of its French plants.

“This announcement is good news for Flins, but also for all Renault plants in France. The efforts committed by our employees under the Renault Agreement are beginning to bear fruit. Renault is in line to fulfill its commitments,” commented Renault Group CEO, Carlos Ghosn.

Under the new contract, Renault is committed to increase production volume of its French plants by 180,000 vehicles, to a total of 710,000 vehicles per year. According to the renewal plan, 100,000 cars will come from Renault’s new products and 80,000 vehicles from partners.

Launched in 2010, the current generation Nissan Micra (pictured below) is based on the same platform as the latest Renault Clio.

By Dan Mihalascu

PHOTO GALLERY

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